Options Intelligence Report: JPMorgan Chase & Co. (JPM) & J.C. Penney Co., Inc. (JCP)
JPM ñ JPMorgan Chase & Co.
Massive bullish positioning in the near-term April contract on investment banking firm, JPMorgan Chase & Co., suggests one big options player is expecting to see continued share price appreciation through expiration next month. JPMís shares rallied 1.60% during the current session to arrive at $44.44.
The optimistic trader purchased 40,000 now in-the-money call options for a premium of $1.20 per contract, at 10:02 am (ET) this morning, when shares of the underlying stock were trading at $43.97. Shares have since surged to an intraday high of $44.51, boosting the asking price on the April $44 strike call options 35% higher to a current value of $1.41 per contract.
The individual holding the 40,000 long calls could technically take net profits of $800,000.00 by selling the contracts for a net gain of $0.20 per contract. But, perhaps the trader expects to reel in more substantial profits on the position should JPMorganís shares to continue to rally higher ahead of expiration day.
JCP ñ J.C. Penney Co., Inc.
The department store operatorís shares surged 4.15% to $33.28 today prompting one investor to take profits on a previously established bullish call position. It appears the trader originally purchased roughly 8,500 call options at the now in-the-money April $32 strike price for an average premium of $0.68 apiece back on March 18, 2010, when shares of the underlying stock were trading at $31.17. JCPís shares increased 6.75% from $31.17 up to todayís price of $33.28, which boosted premium levels on the now in-the-money April $32 strike call options.
Thus, the investor was able to sell the calls today for an average premium of $1.36 apiece and take in net profits of $0.68 per contract. The bullish investor also extended optimistic sentiment on J.C. Penney by buying a fresh batch of 8,500 in-the-money call options at the higher April $33 strike for a premium of $0.82 each. Profits accumulate on the new call position if the JCPís shares rally through the breakeven price of $33.82 ahead of expiration day in April.
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