KKR Forecast + Trading Strategies



Bearish<—>Bullish



80% Confidence




Bullish Case: KKR's strategic investments in high-growth sectors like digital infrastructure and healthcare, along with a favorable options volume skew towards calls, suggest strong growth potential.




Bearish Case: Rising interest rates and market volatility may impact KKR, especially in leveraged sectors. The backwardation in implied volatility reflects investor uncertainty.




Potential Outcomes: 60% growth from strategic investments; 30% risk of interest rates impacting profitability; 10% stability with minor fluctuations.




Trading Oracle: Engage in a bullish debit spread by buying March $165 calls and selling March $175 calls. This capitalizes on current bullish sentiment and term structure in backwardation, with a focus on short-term gains.



February 02, 2025










Correlated Assets

Assets that tend to move strongly with KKR



SSO Forecast + Options Trading Strategies   SSO  ProShares Ultra S&P500 (0.97)


VOO Forecast + Options Trading Strategies   VOO  Vanguard S&P 500 (0.97)


GVA Forecast + Options Trading Strategies   GVA  Granite Construction (0.97)


VIRT Forecast + Options Trading Strategies   VIRT  Virtu Financial (0.96)


KNTK Forecast + Options Trading Strategies   KNTK  Kinetik (0.96)



Uncorrelated Assets

Assets with little price relationship to KKR



UVXY Forecast + Options Trading Strategies   UVXY  ProShares Ultra VIX Short-Term Futures (0.0)


ASAN Forecast + Options Trading Strategies   ASAN  Asana (-0.01)


AZN Forecast + Options Trading Strategies   AZN  Astrazeneca (0.01)


AEHR Forecast + Options Trading Strategies   AEHR  Aehr Test Systems (-0.01)


TS Forecast + Options Trading Strategies   TS  Tenaris S.A. (0.04)



Anticorrelated Assets

Assets that tend to move strongly against KKR



LEA Forecast + Options Trading Strategies   LEA  Lear (-0.91)


IEP Forecast + Options Trading Strategies   IEP  Icahn (-0.91)


EL Forecast + Options Trading Strategies   EL  Estee Lauder Cos. (-0.92)


COTY Forecast + Options Trading Strategies   COTY  Coty (-0.93)


SPXS Forecast + Options Trading Strategies   SPXS  Direxion Daily S&P 500 Bear 3X Shares (-0.98)









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