DraftKings (DKNG) is currently trading around $28, following a decline from a peak near $49. The stock is approaching a support structure that has been repeatedly tested over the last two years.
The first support level is at $26.23, a price point that has served as a floor during previous corrections in 2024 and 2025. When approached, this level has historically led to renewed buying activity, halting price declines.
A secondary support level lies at $24.22, acting as a backup plan if the first fails to hold. This has proven effective during deeper market corrections, with long-term buyers typically showing interest at this point.
DraftKings is known for its volatile price movements, often rallying from support zones to the $45-$53 range, then returning to test support. Currently, the stock has a $2 cushion before potentially testing the first support level. If selling pressure increases, this could quickly lead to a test of support.
Swing traders may plan to enter around $26.23 if signs of support manifest, setting stop-loss orders below $24. If the price falls further, $24.22 becomes the next point of interest. A breach below $24 could indicate a need for the stock to find balance at lower levels.
Looking back at analysis from 2025, we noted that DraftKings has a history of violent swings, and right now is no different. As of today, the stock is sitting around $28, putting it dangerously close to a critical support zone we’ve been watching for years. With Super Bowl LX just days away, we expect a massive surge in volatility, creating opportunities for those prepared for a sharp move.
The two levels that matter are $26.23 and the more serious floor at $24.22. Throughout 2024 and 2025, we saw buyers consistently step in at these prices to stop the bleeding and start a new rally. This predictable rhythm has made the stock a trader’s favorite, rewarding those who bought at support and sold into the rallies toward the $45-$50 range.
For traders anticipating that this support will hold once again, selling puts is a strategy to consider. Given the heightened implied volatility from the upcoming Super Bowl, premiums on the March expiration puts with strikes at $26 or $24 are elevated. This allows you to collect income while defining a price at which you’d be willing to own the stock.
Recent data supports the potential for a big move, as the American Gaming Association projects a record 75 million Americans will place bets on the Super Bowl. While our own look at DKNG’s Q4 2025 earnings showed fantastic user growth through the NFL season, high promotional spending has kept profitability concerns front and center. This classic push-and-pull between growth and costs is exactly why the stock is now re-testing these long-held support levels.
If you believe the support will finally break, buying put options offers a direct way to bet on a downward move. A decisive close below the $24.22 level would invalidate this multi-year pattern and could trigger a much deeper slide. Watching the volume on any move below that price will be key to confirming a true breakdown.
A more defined-risk approach for a bounce would be a call debit spread. Buying a March $28 call while simultaneously selling a March $32 call, for example, would cap both your potential loss and your potential gain. This strategy lets you play for a rebound off support without exposing yourself to the uncapped risk of holding the stock outright.
