KREF251017C00012500 Option on KKR Real Estate

An 'Out of The Money' option on KKR has a strike price that KKR Stock has yet to reach, meaning the option has no intrinsic value. 'Out of The Money' options are usually less costly than 'In The Money' options, making them more desirable to traders with smaller amounts of capital. Some of the uses for KKR Real's 'Out of The Money' options include buying the options if you expect a big move in KKR Real's stock. Since 'Out of The Money' options have a lower up-front cost (i.e., no intrinsic value) than 'In The Money' options, buying it is a reasonable choice.

KKR Real's Option Greeks for the contract ending on 2025-10-17 at a strike price of 12.5 measures the various factors that affect its cost and calculated using a theoretical options pricing model. It helps investors make more informed decisions about whether to trade this option contract or when to trade it. In addition to KKR Real's option greeks, its implied volatility helps estimate the risk of KKR Real stock implied by the prices of the options on KKR Real's stock.

Put options written on KKR Real grant holders of the option the right to sell a specified amount of KKR Real at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of KKR Stock cannot fall below zero, the put buyer does gain as the price drops. So, purchasing a put option on KKR Real is like buying insurance aginst KKR Real's downside shift.

By selling KKR Real's put option, the investors signal their bearish sentiment. A short position in a put option written on KKR Real will generally make money when the underlying price is above the strike price. Therefore KKR Real's put payoff at expiration depends on where the KKR Stock price is relative to the put option strike price. The breakeven price of 12.53 is the critical point that divides the payoff function into two parts. Below the breakeven price, the payoff is dropping and negative (the seller makes a loss). Above the breakeven price, the payoff line is upward sloping as the option payoff increases in proportion to KKR Real's price. Finally, at the strike price of 12.5, the payoff chart is constant and positive.

KKR Real's option chain is a display of a range of information that helps investors for ways to trade options on KKR. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for KKR. It also shows strike prices and maturity days for a KKR Real against a given expiration period. The table below combines all the option information in the form of a chain but before you use it, remember that it entails significant risk and it is not for everyone.

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in KKR Real Estate. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in income. You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

Is Mortgage Real Estate Investment Trusts (REITs) space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of KKR Real. If investors know KKR will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about KKR Real listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

The market value of KKR Real Estate is measured differently than its book value, which is the value of KKR that is recorded on the company's balance sheet. Investors also form their own opinion of KKR Real's value that differs from its market value or its book value, called intrinsic value, which is KKR Real's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because KKR Real's market value can be influenced by many factors that don't directly affect KKR Real's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between KKR Real's value and its price as these two are different measures arrived at by different means. Investors typically determine if KKR Real is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, KKR Real's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.