Why one trader is selling puts in KKR
Chris McKhann | email@example.com
optionMONSTER systems show that the May 19 puts dominate the action, as a trader sold a block of 4,567 for the bid price of $0.45 on a relatively wide bid/ask spread. The previous open interest had been just 336 contracts, so this is a new position.
The put seller is looking for KKR to stay above the $19 strike price through expiration in mid-May. He or she will face the obligation to buy shares at that level if they fall below it. (See our Education section)
KKR is flat on the day at $19.60. It posted an intraday high of $20 on March 14 and a closing high of $19.63 the previous day, but shares were below $19 last week.