Noteworthy Wednesday Option Activity: ZETA, ELF, DKNG

e.l.f. Beauty (ELF) and DraftKings (DKNG) are experiencing unusually high options trading volume today, significantly exceeding their average daily share trading volumes. ELF's options volume represents 134.1% of its average daily share volume, with notable activity in the August 2025 $80 strike put, suggesting increased bearish interest or downside hedging. Similarly, DKNG's options volume is 123.9% of its average daily share volume, driven by high trading in the September 2025 $50 strike call, indicating heightened bullish sentiment or upside positioning.

Analysis

Significant options market activity is being observed in e.l.f. Beauty Inc. (ELF) and DraftKings Inc. (DKNG), with total options volume representing a substantial portion of their average daily share turnover. For ELF, options volume reached 134.1% of its average daily share volume, indicating a material increase in derivatives trading relative to equity flows. The concentration of this activity in the August 15, 2025, $80 strike put, with 2,039 contracts traded, suggests a notable bearish sentiment or a large-scale hedging operation against a price decline below $80 over the long term. Similarly, DKNG's options volume was 123.9% of its average daily share volume. The exceptionally high volume in a single contract, the September 05, 2025, $50 strike call with 21,907 contracts traded, points towards a strong bullish conviction, with market participants positioning for significant upside beyond the $50 level over the next year.

Key Decisions for Investors

• Given the high volume in long-dated puts for e.l.f. Beauty (ELF), investors should consider this a potential signal of downside risk or institutional hedging and monitor the $80 price level as a key area of interest.
• The substantial bullish positioning in DraftKings (DKNG) via long-dated $50 call options suggests strong market conviction for future appreciation, which could support a positive outlook for the stock.