DailyPlay – Opening Trade (KMI) – February 20, 2025

KMI Bearish Opening Trade Signal

Investment Rationale

Kinder Morgan Inc. (KMI) recently broke below its trading range and has rallied back to resistance, creating an attractive risk/reward opportunity for bearish exposure with a downside target of $22.

Fundamentally, KMI appears significantly overvalued. It trades at a forward P/E ratio of 20.74x, which is 30% higher than the industry median of 15.36x. While its expected EPS growth of 8.22% exceeds the industry average of 6.52%, and its revenue growth of 8.34% is higer than the industry’s 3.29%, its net margins of 17.31% remain relatively close to the industry average of 15.10%.

KMI – Daily

Trade Details

Strategy Details

Strategy: Long Put

Direction: Bearish Put

Details: Buy to Open 13 Contracts KMI April 4 $28 Puts @ $1.53 Debit per Contract.

Total Risk: This trade has a max risk of $1,989 (13 Contracts x $153) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $153 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bearish trade on a stock that is expected to continue lower off an area of resistance.

1M/6M Trends: Bearish/Neutral

Relative Strength: 9/10

OptionsPlay Score: 99

Stop Loss: @ $0.77 (50% loss of premium)

View KMI Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Wednesday ‘s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View KMI Trade