OptionsHouse

Options Trading News

October 1, 2012  Mon 11:46 AM CT

JPM: SEE CHART GET CHAIN FIND STRATEGIES
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

JPM

Bulls target JPMorgan for second day

January 27, 2016

The bank is down 14 percent in the last month despite reporting bullish results on Jan. 14, but traders are buying calls in the name for the second session in a row.

JPM

Calls are banking on pop in JP Morgan

January 26, 2016

The financial giant reported bullish results on Jan. 14 but pulled back with concerns about the sector and weakness in the broader market.

JPM

JP Morgan draws bullish earnings play

January 12, 2016

The bank reported bearish results on Oct. 13 and is scheduled to announce its next earnings numbers in the pre-market hours on Thursday.

OptionsHouse

Premium Services

Upcoming Webinar:

How to Defend Your Portfolio and Profit in a Market Selloff

http://bit.ly/1OSMWU6

Jon Najarian and Sandy Chaikin of Chaikin Analytics demonstrate how to play defense when the market is selling off. And, how to turn misery into money, whether investing in stocks or trading options.

Education & Strategy

The sweet spot

When using the Stock Replacement Strategy, we must remember that in reality, we are doing a STOCK trade. We are just using options. We are replacing the stock position with an option position (long calls).

View more education articles »