Bearish Sentiment Grows Around Kinder Morgan Stock Options

Bearish sentiment grows around Kinder Morgan stock as analysis of recent options trades shows significant bearish indicators. 55% of traders are leaning bearish, signaling potential pressure on stock prices.

Date: 10-01-2025

AI Rating: 5

Market Sentiment Analysis
Recent analysis of options trading for Kinder Morgan (NYSE: KMI) reveals a bearish trend among traders. A substantial 55% of options trades indicate a bearish sentiment, contrasting with only 22% showing bullish tendencies. This disparity in sentiment could lead to increased selling pressure on the stock, affecting its price negatively.

The total value of trades includes 3 puts totaling $100,604 and 6 calls valued at $627,490, highlighting a preference for protective positions among traders. Such moves typically indicate expectations of downward price movements, further contributing to a bearish outlook.

Options Trading Insights
In terms of options volume and open interest, the average open interest sits at 11,543.75, with a total volume reaching 4,377.00. The main strike price window observed for Kinder Morgan's options trades ranges between $20.00 and $30.00 over the past quarter. This suggests that big players are positioning themselves for potential volatility within this price range, which may prompt further price fluctuations.

Current Market Performance
Kinder Morgan's current trading volume is recorded at 6,000,791, with a slight price decrease of -0.02%, bringing the stock price to $28.29. The recent RSI indicators hint that the stock may be nearing an overbought condition, implying a possible correction could occur. Furthermore, an earnings announcement is expected in 11 days, which could further induce volatility depending on the results and market reactions.

Expert Ratings Overview
The expert opinions regarding Kinder Morgan's performance show mixed evaluations. While an analyst from Wells Fargo maintains an Overweight rating with a target of $30, another from Scotiabank has downgraded its rating to Sector Perform with a lower target of $26. Finally, Barclays maintains an Equal-Weight rating with a price target of $27. These varied predictions can add to the uncertainty for investors, possibly impacting market sentiment towards the stock.

Stocks: KMI