DraftKings Inc (NASDAQ:DKNG) is 1.8% lower to trade at $39.18 at last check, pulling back toward its +10% year-to-date level and heading for a seventh-straight loss. This rut present an intriguing buying opportunity, if past is precedent, as the sports betting stock just pulled back to a historically bullish trendline.

According to data from Schaeffer's Senior Quantitative Analyst Rocky White, DraftKings stock is now within striking distance of its 80-day moving average. For the purpose of this study, White defines that as the equity trading above the moving average 80% of the time over the past two months and closing north of the trendline in eight of the last 10 sessions before coming within striking distance of it. 

Per White's data, five similar pullbacks occurred during the past three years. In the month after 80% of these signals, DKNG averaged an 8.7% gain, and finished higher 80% of the time. A comparable move would have the shares filling their month-to-date deficit.

Fueling the rebound case is the shares' 14-day relative strength index (RSI) of 21.6, firmly in "oversold" territory. An unwinding of pessimism in the options pits could add more tailwinds. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), DKNG's 10-day put/call volume ratio of 0.75 stands higher than 96% of readings from the past 12 months.

Now looks like a good time to weigh in on DraftKings stock’s next move with options. Its Schaeffer's Volatility Index (SVI) of 42% stands in the low 7th percentile of annual readings, implying options players are pricing in relatively low volatility expectations at the moment.