JPM – JPMorgan Chase & Co. – Bank stocks are rallying this morning after the Wall Street Journal reported the Fed may allow healthy banks to raise dividends. The Fed may release guidelines for assessing whether banks are healthy and strong enough to up dividends or buy back shares as early as this month, according to news reports. JPMorgan’s shares took off running and increased as much as 3.9% to hit an intraday high of $41.34 in the first half of the session, with shares currently trading higher by 2.9% to stand at $40.95 as of 11:00 am in New York. One options investor was quick to take a bullish stance on the financial services firm right out of the gate this morning. The trader enacted a three-legged spread on the stock, selling 5,000 puts at the December $38 strike for a premium of $0.63 each, buying the same number of in-the-money calls at the December $40 strike at a premium of $1.78 per contract, and selling 5,000 calls at the higher December $43 strike for a premium of $0.55 apiece. The net cost of the transaction amounts to $0.60 per contract and positions the options player to profit as long as JPM’s shares exceed the effective breakeven price of $40.60 through December expiration. Maximum potential profits of $2.40 per contract are available to the investor if the price of the underlying stock jumps 5.00% over the current price of $40.95 to exceed $43.00 by expiration day next month. As of 11:10 am, investors have exchanged more than 165,000 option contracts on JPMorgan, with more than two calls changing hands on the stock for each single put option in play thus far today.