Noteworthy Friday Option Activity: SOC, DKNG, M

DraftKings (DKNG) and Macy's (M) are exhibiting significant options trading activity today, with DKNG seeing 52,689 contracts (71.6% of average daily volume) and M recording 78,372 contracts (69.5% of average daily volume). This elevated interest is notably concentrated in long-dated call options, specifically the DKNG $45 strike and M $13.50 strike, both expiring September 19, 2025, indicating potential speculative positioning or strategic bullish bets on these equities.

Analysis

DraftKings (DKNG) and Macy's (M) are exhibiting a significant deviation from normal trading patterns, characterized by unusually high options volume. For DKNG, today's options volume of 52,689 contracts represents 71.6% of its average daily share volume, while Macy's options volume of 78,372 contracts equates to 69.5% of its typical daily share turnover. This activity is not diffuse; rather, it is highly concentrated in long-dated call options. Specifically, the DKNG September 19, 2025, $45 strike call and the M September 19, 2025, $13.50 strike call have seen substantial interest, with 4,348 and 26,667 contracts traded, respectively. The long-term nature of these expirations, combined with the focus on out-of-the-money call options, indicates that this is not short-term earnings-related speculation but rather a strategic, bullish positioning by a segment of investors betting on significant price appreciation for both companies over the next year.

Key Decisions for Investors

• Investors should recognize the elevated, long-dated call volume in DKNG and M as a strong signal of bullish sentiment from market participants with a long-term horizon.
• For DraftKings, the concentration of activity at the $45 strike for September 2025 suggests traders are positioning for substantial upside, a factor to consider when evaluating the risk-reward profile of a long position.
• The significant volume in Macy's $13.50 calls for September 2025 could indicate a speculative bet on a successful business turnaround or value realization, warranting a deeper dive into the company's long-term strategic plans and catalysts.