Market News

May 30, 2013  Thu 2:45 AM CT

JP Morgan posted its highest close in more than a decade yesterday, and one trader is betting that any downside will be limited.

optionMONSTER systems show that a trader sold 4,000 December 48 puts for the bid price of $1.58. This is clearly a new position, as the volume was almost 4 times the strike's open interest before the trade appeared.

The put seller sees JPM holding above $48 through the end of the year. If the stock falls below that strike price, the trader will face the obligation to buy shares at that level. (See our Education section)

JPM finished the day up 0.13 percent at $54.67, its highest close since early 2001. Shares of the financial giant have been running up from support at $47 since the start of the month.
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