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Quantchabot has detected a promising Bull Put Spread trade opportunity for KKR & CO INC (KKR) for the 5-Feb-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

KKR was recently trading at $41.18 and has an implied volatility of 30.14% for this period. Based on an analysis of the options available for KKR expiring on 5-Feb-2021, there is a 34.14% likelihood that the underlying will close within the analyzed range of $41.18-$43.80 at expiration. In this scenario, the average linear return for the trade would be 35.48%.

52 week high: KKR & CO INC recently reached a new 52-week high at $41.74. KKR had traded in the range $15.55-$41.49 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 $41.18 on 5-Feb-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 $41.10 on 5-Feb-2021. Based on our risk-neutral analysis, there is a 51.29% 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.