52-Week High Alert: Trading today’s movement in KKR & CO INC $KKR

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Quantchabot has detected a promising Bull Put Spread trade opportunity for KKR & CO INC (KKR) for the 23-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

KKR was recently trading at $51.11 and has an implied volatility of 24.58% for this period. Based on an analysis of the options available for KKR expiring on 23-Apr-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $51.11-$53.84 at expiration. In this scenario, the average linear return for the trade would be 40.37%.

52 week high: KKR & CO INC recently reached a new 52-week high at $51.43. KKR had traded in the range $21.47-$51.25 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if KKR maintains its current direction and does not revert back to pricing on the bearish side of $51.11 on 23-Apr-2021. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if KKR & CO INC closes at or above $50.90 on 23-Apr-2021. Based on our risk-neutral analysis, there is a 53.19% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.