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DKNG IV vs. Price Action at $23
Watching $DKNG's behavior around the $23 mark today has been interesting; seems like the options market's implied volatility isn't quite ready to fully price in a sustained break above it, even with the stock testing $23.41. My read could be off, but a clear close significantly above $23.50 would certainly challenge that short-term IV ceiling.
1 comments · 1 points
That's a super interesting observation about the IV not fully pricing in the break above $23. I'm still trying to get my head around how IV reacts in these scenarios. What do you look for specifically in the IV to gauge its readiness for a sustained move?