joe biden said if he gets in he will do another lockdown. i dont think he is lying. with inaguration day coming soon and no convincing signs that trump will stay in office, its looking more and more like biden will get in.
dkng is highly dependent on sports obviously, and if the lockdown gets confirmed this thing is gonna sell off hard.
from a technical standpoint it looks like there may be some underlying weakness. the breakout from last week has been completely faded over the course of this week. we have an ascending channel/wedge and the chances are that it will break down and the daily macd is curving lower, not sure if it will start selling off again, but if the channel support doesnt hold, i will be entering short. if we break below the 50 and 20 day moving averages (white [20] and gold[50]), we will probably see a significant second leg down. also, we have possible hidden bearish divergence on the daily macd.
there is a bull case to be made however. we are still in an uptrend on a macro level and on an intraday level, and it looks like we may get a bull cross of the 50 and 20 day soon if it can continue going higher.
could still be bullish, but there is a bigger, stronger bear case to be made here.
I'd be careful with a short position. The NHL and NBA are supposed to announce when they are going to open their seasons. Im sitting on the sidelines for now. I am long and will look to sell the 55 (14DTE) and 60 (45 DTE) puts as well as buying 35 DTE ATM calls once the reopening announcement is made. Price target of 65-70.
lofihenny
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@llandsberg nice strategy I may go long too then. When’s the announcement?
llandsberg
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@lofihenny, There is not an official announcement date. I have NHL/NBA news alerts on Bleacher Report and The Score. just standing by.
llandsberg
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DKNG is stalled at the moment because there is not much for the North American market to bet on. NFL is mostly a weekend affair and with all the injuries and covid issues, bettors are cautious. the NHL and NBA are exploring ways to begin their seasons. Once it's made public that there will be action, DKNG should get more interest and prices will go up. Right now there is a better opportunity for deployed capital elsewhere in the market.
kentoe0001
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I don't think anything happening with it has anything to do with a possible Biden shutdown but could be a lot of consolidation since the share offering in Oct was at $52 so a lot of people may have looked to get out. The $49-$52 range seems to be coiling but still see the recent downtrend as a descending wedge just as we saw a couple weeks ago