OptionsHouse

Options Trading News

September 4, 2013  Wed 5:16 AM CT

JPM: SEE CHART GET CHAIN FIND STRATEGIES
Financials were on the move yesterday, and the fast money was targeting JP Morgan.

optionMONSTER's Heat Seeker system detected heavy volume in the Weekly 52.50 calls expiring this Friday, with big trades hitting early for $0.11 to $0.15. An even 16,000 traded in volume far above the strike's previous open interest of 2,685 contracts, indicating that new positions were established.

These long calls lock in the price where shares can be purchased in the financial giant, letting investors cheaply position for a rally. These options also control the amount of money that can be lost if the stock falls. (See our Education section)

JPM closed yesterday up 1.19 percent to $51.13. The question is whether it can hold onto its gains, which is a tough one to answer with Syria action looming and possible changes in monetary policy by the Federal Reserve. But the use of short-term options keeps risk to a minimum while ensuring that investors won't miss a pop in the shares.

Overall calls outnumbered puts in the name by about 59,000 to 14,000, a reflection of the session's bullish sentiment.

Disclosure: I own JPM calls.

(A version of this post appeared on InsideOptions Pro yesterday.)
Share this article with your friends


Related Stories

JPM

Cramer: How banks can stabilize

January 21, 2015

The banks are have to report that they are done with legal charges, that they have high single-digit earnings growth, and that what matters is that loans are growing while expenses are falling.

JPM

JP Morgan gets huge bullish bet

January 7, 2015

The financial giant peaked on the last day of 2014, hitting its highest price since March 2000, but has fallen sharply in the three sessions since.

OptionsHouse

Premium Services

Free Webinar

Option Money Machine Winter Classic

Education & Strategy

The rolling technique

In the January 7th edition of Advantage Point, we initiated the purchase of a second week-out GOOGL 535 put at...

View more education articles »