OptionsHouse

Options Trading News

May 30, 2013  Thu 2:45 AM CT

JPM: SEE CHART GET CHAIN FIND STRATEGIES
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.
Share this article with your friends


Related Stories

JPM

Traders bet JP Morgan will hold ground

April 26, 2016

Traders apparently believe that downside potential is limited for the banking giant, which has risen 14 percent in the last three months.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Market Level Making You Nervous, Huh? Part 3

In last week's article, we discussed how important the extra cash you save by using the Stock Replacement Strategy over buying the actual stock is! That extra cash in our account instead of being unnecessarily tied up in a stock position allows us to buy the puts we would need to protect our downside in the case of a major sell-off.

View more education articles »