Calls Purchased on KKR Financial Holdings (KFN)

Shares of KKR Financial Holdings KFN are higher on the session by 1.71%, currently trading at $8.94. The stock has been moving largely higher over the past five months, rallying from a recent low near $7.00, and is currently trading above the 50-day and 200-day moving averages. Options traders are buying calls on the name today. Though action has been primarily in small lots, overall call volume is now running at 2.58x the daily average with 74% of all calls traded being purchases on the offer. The heaviest action is coming on the January 2011 $10.00 strike, where 854 contracts have traded. KKR Financial Holdings LLC is a specialty finance company with focus in a range of asset classes. The company invests in financial assets consisting primarily of below investment grade corporate debt, including senior secured and unsecured loans, mezzanine loans, high yield corporate bonds, distressed and stressed debt securities, marketable and non-marketable equity securities and credit default and total rate of return swaps.