Hitting a home run in KKR Financial

optionMONSTER

Talk about fast money--just look at Pete Najarian's call in KKR Financial from last week.

"They're a play on real estate, but they're also a play on energy," optionMONSTER's co-founder declared on CNBC last Friday , naming KFN as one of his top three picks for 2014. He also liked its rich dividend and below-book value price.

But the trade won't even last until next year because last night news emerged that KFN had accepted a $2.6 billion buyout by its original parent, KKR. Under the deal, each share of KFN will be swapped for 0.51 KKR share--which represented a 35 percent premium when the deal was announced.

Like many other ideas from optionMONSTER, the KFN trade had its genesis in unusual activity on our Heat Seeker monitoring system. Back on Nov. 13 , Najarian cited buying in the April 10 calls for $0.15 to $0.25. They looked pretty attractive at the time, with a low entry price and plenty of time to perform.

Today they're up a stunning 800 percent, and our subscribers are laughing all the way to the bank. KFN is up 28.57 percent to $12.15 this afternoon.


More From optionMONSTER

Rates

View Comments (0)