Traders Betting On A Rally in KKR Financial (KFN)

Shares of KKR Financial Holdings KFN may have ended the session lower by 5.06%, trading at $9.00, but options traders were pretty active in the name today—mostly on the call side. KFN saw roughly 7,800 calls trade today, this compares with only 3,000 puts traded. The largest trade was the purchase of 1,500 April 2011 $9.00/10.00 cal spreads. Volume on those strikes ended the session at 2,839 contracts and 2,762 contracts, respectively. Open interest was surpassed on both strikes. The stock has been moving largely higher over the past six months and is currently trading above the 50-day and 200-day moving average. Shares hit a fresh 52-week high earlier in the week at $9.50. 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.