FSK Forecast


Bullish Case: FSK's institutional investment increases and dividend policy sustains investor confidence. Strong earnings and recovering non-accrual loans boost price outlook.


Bearish Case: Rising high implied volatility signals market concern over long-term stability. Credit quality issues and the heightened cost of borrowing could pressure FSK's price.


Potential Outcomes:

1. Price growth due to strong earnings and dividend attraction (45%).

2. Price stagnation amid market uncertainties (35%)

3. Price decline due to credit issues and high borrowing costs (20%).


Trading Oracle: Adopt a bearish debit spread using Helium long volatility, specifically, the FSK January 17, 2025 $22.5/$20.0 strike puts. This strategy benefits from increasing volatility and has a positive edge. High reward:risk, 186 days duration with a strategy market expected edge of $19.


July 16, 2024


FS KKR Forecast

FSK      FS KKR











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