Large Block of Puts Purchased on JPMorgan (JPM)

Shares of JPMorgan Chase & Co. (JPM) are trading lower on the session by 0.66%, at $40.70. The stock has been consolidating above the 20-day moving average after a multi-day rally in early September.

JPM now looks to have near-term support at $39.70, as well as $37.75.

One institutional trader is picking up downside protection on the name today. A short while ago, the December $38.00 put was purchased 20,000 times, near the offer, for $1.03. With current open interest of only 6,751 contracts, this is clearly new positioning on JPM.

With near-term implied and historical volatility at 25% and 23%, respectively (near a four-month low), the trader was paying a slight premium for the contracts at 28% vol.

This trade has solely pushed JPMorgan into the top ten most active names today, with over 65,000 options traded. 38,000 of those have been puts.

JPMorgan Chase & Co. is a financial holding company. The company is a global financial services firm and a banking institution in the United States, with global operations. 

About Michael Zerinskas

Originally from Chicago, Michael J. Zerinskas began his career as an intern for a small high-frequency trading firm based at the CME; he then moved on to become Chief Options Strategist at Benzinga.com. Michael is now Unusual Activity Editor at The Options Insider, specializing in VIX, volatility, and flagging unusual activity.