Is The Bottom In For KKR?

The market’s recent rotation back toward areas that were heavily discounted earlier this year is starting to show up in some of the more beaten-down corners of the financial sectors. The private asset-management space is a good example, as fears surrounding software exposure and the so-called “SAS-pocalypse” pushed investors into a sell-first mindset, only for many of those concerns to prove overstated as software stocks recovered. One name now showing meaningful chart repair is KKR & Co. (KKR), which has carved out a series of higher highs and higher lows, broken to fresh six-month highs, and triggered a Profit Surge Buy signal with its 21-Day EMA moving above the 63-Day EMA. For traders, that crossover matters because it shows the shorter-term trend has regained control of the intermediate trend, adding technical confirmation to KKR’s broader bottoming and recovery pattern. This technical signal is what landed KKR on our watchlist.

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There are several ways to approach a setup like this, from simply owning KKR shares to using an option for more leveraged upside participation with less capital committed upfront. For a more aggressive expression, a slightly in-the-money call could provide exposure to further upside while keeping the amount at risk defined to the premium paid. For example, if KKR were to gain 10% by expiration, a currently available call option for stock would be on pace for an 88.8% profit potential, although the actual result would depend on the option’s strike, expiration, implied volatility, and KKR’s price path.

For investors looking to turn strong technical setups into another potential income stream, finding the right trades is only half the challenge—the bigger question is knowing how to structure them. Our Options For Income Newsletter gives you our framework, with a first-month trial for just $1 and multiple actionable trade ideas each week backed by our technical analysis, complete setup details, and additional strategy tips. Take the next step and start your $1 trial today!

Wishing You the Best in Investing Success,