KKR is getting support from a familiar trendline
KKR & Co Inc (NYSE:KKR) is experiencing a bull flag pattern on the charts, with support from its 80-day moving average, which has supported the stock multiple times this year. With the stock trying to form a bottom around four times its 2020 low, now seems like a good time to bet on KKR’s next leg higher.
Although pessimism is starting to dissipate in options wells, KKR’s 50-day buy/sell volume ratio on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) remains above 80% of past year readings. Echoing this, Schaeffer’s Open Put/Call Interest Ratio (SOIR) of 1.36 is in the high 92nd percentile of readings in its annual range. This means that the short-term selling open interest outweighs the buying open interest by a wider margin than usual.
It’s also worth pointing out that the stock’s Schaeffer’s Volatility Scorecard (SVS) sits at a relatively high 76 out of 100, meaning the stock has exceeded options traders’ volatility expectations over the course of the year. past year. Finally, our recommended call option sports a leverage ratio of 6.58 and will double on a 14.2% rise in KKR stock.