One investor is turning time into money with KKR.
optionMONSTER's monitoring programs detected the sale of 6,244 June
20 puts for $0.60 and the purchase of an equal number of May 19
puts for $0.10. Volume was below open interest in the May
contracts, indicating that an existing short position was closed
and rolled forward in time.
The investor had probably sold the May 19s at an earlier time,
looking for the private-equity firm to remain above that strike
price. Now that the stock has risen above that threshold, he or she
is moving the position to the June 20s, collecting an additional
$0.50 of income and committing to the trade for another month. The
bullish adjustment, which now sees KKR staying above $20, also
raises the price at which the trader has agreed to buy shares. (See
section for more on
KKR rose 0.15 percent to $20.50 yesterday and is up 34 percent so
far this year. Shares have been steadily melting higher as a rising
stock market drives up the value of the company's investments,
leading profit to beat expectations in the last two quarters.
Total option volume in the name was 7 times greater than average in
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