By David Russell, reporter at OptionMonster
NEW YORK -- Private-equity firm KKR (KKR) has been pulling back, and Thursday the bulls stepped in.
OptionMonster's tracking systems detected the purchase of some 6,200 January 21 calls, most of which priced for 75 cents. The volume was more than 22 times the previous open interest in the strike, indicating that new money was put to work.
These calls lock in the price where investors can buy shares and can provide significant leverage in a rally. For instance, a 25% move in the stock by expiration in mid-January would drive up the calls' premiums by more than 150%.KKR rose 0.71% to $18.43 Thursday. It peaked above $21 in April before falling along with the rest of the market and is now trying to bounce around the same $18 level that presented resistance in February. Total option volume in the name was 5 times greater than average in the session, with calls outnumbering puts by 15 to 1. Russell has no positions in KKR.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV