OptionsHouse

Options Trading News

April 12, 2013  Fri 10:14 AM CT

JPM: SEE CHART GET CHAIN FIND STRATEGIES
A big put trade tops the options activity in JP Morgan even though shares are showing minimal reaction to its earnings announcement this morning.

optionMONSTER's Depth Charge system shows that a trader sold 21,000 May 48 puts for $0.65, less than the bid price listed, in volume well above the previous open interest of 7,041. Seconds later, he or she bought 24,442 April 48 puts for the ask price of $0.17. The open interest at that strike was more than 33,000, so that could have been an opening or closing trade.

If it was an opening trade, this is basically a calendar spread set to profit if JPM is around $48 at the end of next week. But it is more likely a roll, with the trader moving a short-put position out a month as the April options have lost most of their value and will expire in a week. (See our Education section)

JPM is down fractionally at $48.97 this morning. The financial giant was at a high of $51 a month ago and tested support at $47 last week.

More than 180,000 JPM options have already changed hands so far, compared to a daily average of 73,000.
Share this article with your friends


Related Stories

JPM

Large bullish trade in JP Morgan

June 16, 2015

The banking giant is near record highs, and one major investor is repositioning for even more gains with a large call roll.

JPM

Bullish earnings play in JP Morgan

June 11, 2015

The bank, which is up more than 13 percent in the last three months, has rallied with the rest of the financial sector as interest rates have risen.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Real vs. Synthetic

We now know that there are two ways of creating a call position, a put position, and a stock position. We can simply use the actual real security or we can recreate it synthetically. We can create these positions in both long and short forms and this ability sets up an interesting scenario--an arbitrage!

View more education articles »