JP Morgan is just turning positive this morning, and one large trader sees a floor beneath the stock.
JPM opened the day lower but is now up 0.4 percent at $32.94. The bank gapped higher at yesterday's open but finished the day lower. Shares were trading above $46 two months ago but posted its lowest close for the year at $31 on Monday before bouncing.
A trader sold 10,000 December 35 puts for the bid price of $5.05, according to optionMONSTER's systems. This volume was twice the open interest at that strike, so it was a new position.
The put selling is a bet that JPM will bounce from here. Traders who sell in-the-money puts also use such positions to buy stock at a lower price, as will happen here if they are assigned at $29.95. (See our Education section)
Options Trading News
Social Media
Follow optionMONSTER for news and updates
Premium Services
-
Semi-active traders looking for simple calls and spreads (5 per week).
Learn More -
Entry-to-mid level traders looking for full circle trade analysis (1 per week).
Learn More -
Tailored, one-on-one education designed and led by Jon & Pete (3 months and up)
Learn More
Education & Strategy
So why do we bother with spreads?
Trading options allows for far deeper levels of complexity than stocks. And while you may never fully venture all the...
