Options News
$KKR call prices triple
Option traders collected huge profits in KKR & Co. today. On June 22, Investitute’s tracking systems detected the purchase of 5,000 July $26 calls for $0.30 with shares at $24.82. These were clearly new positions, as open interest in the strike was a mere 9 contracts before the trades occurred. Those calls sold for $1.10 today, more than […]
Option traders collected huge profits in KKR & Co. today.
On June 22, Investitute’s tracking systems detected the purchase of 5,000 July $26 calls for $0.30 with shares at $24.82. These were clearly new positions, as open interest in the strike was a mere 9 contracts before the trades occurred.
Those calls sold for $1.10 today, more than 3 times their initial purchase price. The stock rose 7.74% in the same time frame, underscoring how options can far outperform their underlying shares.
Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.
KKR jumped 2.9% to $26.63 today. Shares have continued their surge from yesterday morning after the company reported its conversion from a partnership to a corporation.