Options Trading News

October 1, 2012  Mon 11:46 AM CT

Shares of JP Morgan are on pace to match their highest close since the start of May, and one trader is looking for more gains.

A trader bought 7,500 October 43 puts for $0.27 against open interest of 17,814 while selling 15,000 October 45 calls for the bid price of $0.06, according to optionMONSTER's systems. Open interest in the latter strike was just under 9,000 contracts, so it was a new position.

This could be a trader rolling up a short call position up and doubling its size, but it seems more likely that this is a new ratio spread. This would indicate that the trader sees the stock moving up to $45 but not beyond, as he or she would be effectively be short the stock at that point. (See our Education section)

JPM is up 2.45 percent today to $41.47 in afternoon trading. This matches the close from September 13, the highest since the start of May. Shares were down at a 2012 low below $31.
Share this article with your friends

Related Stories


JP Morgan gets vote of confidence

November 17, 2015

The financial giant's last quarterly report on Oct. 13 was bearish, and its next set of numbers is scheduled for Jan. 14.



The fastest money in the market
View full report »

Premium Services

Education & Strategy

The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »