IB Options Brief: JPMorgan Chase & Co. (JPM)
JPM – JPMorgan Chase & Co.
Trading traffic in JPMorgan call options this morning suggests some traders are positioning for shares in the U.S. bank to rally to their highest level since May by the end of the week. U.S. stocks are moving broadly higher on Monday and JPM shares advanced 2.3% to $41.40 by 11:30 a.m. ET, after the ISM’s U.S. factory index rose to 51.5 in September. Traders snapping up weekly calls on the stock are well-positioned to benefit from further upside in the shares in the near term.
More than 6,300 calls have changed hands at the Oct. 05 ’12 $42 strike against previously existing open interest of 2,750 contracts. It looks like most of the calls were purchased for an average premium of $0.10 apiece, thus positioning buyers to profit in the event that JPM shares rally another 1.7% to top the average breakeven price of $42.10 by expiration this week. Shares in JPM, up more than 30% since the first full week in June, last traded above $42.10 on May 7th. The company is scheduled to report third-quarter earnings ahead of the opening bell next Friday.
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