Market News

October 19, 2016  Wed 8:22 AM CT

Traders are making inexpensive wagers that JP Morgan Chase will continue higher in coming weeks.

optionMONSTER's tracking program shows that 8,000 Weekly 71.50 calls expiring on Nov. 4 were purchased for $0.04 and $0.05 yesterday. This represents fresh buying, as open interest in the strike was a mere 42 contracts before the session began.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

JPM rose 0.79 percent to $67.70 yesterday and is up 5 percent in the last three months. The financial giant, which beat quarterly earnings and revenue estimates last Friday, is scheduled to announce its next quarterly results in pre-market hours on Jan. 13.

Overall option volume was about average in JPM yesterday.

News Archives
OptionsHouse

Education & Strategy

President John F. Kennedy, Thanksgiving 1963

This Proclamation by JFK was delivered November 4, 1963. It proclaimed November 28, 1963 as a day of national thanksgiving.

More education articles »