JPM – JPMorgan Chase & Co. – The investment banking and financial services firm’s shares commenced the current session in the red but clawed their way back up to stand 0.25% higher at $39.04 as of 12:40 pm (ET). One bullish options investor ignored earlier declines in the price of the underlying shares and purchased roughly 10,000 calls at the July $43 strike for an average premium of $0.89 per contract. The trader is prepared to accrue potentially unlimited profits to the upside if JPMorgan’s shares increase 12.4% over the current price of $39.04 to exceed the breakeven point at $43.89 ahead of July expiration day. We note JPM’s shares last traded above $43.89 back on April 30, 2010, when the firm’s share price touched an intraday high of $44.06.
Affiliation: Interactive Brokers
Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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