Options Brief: JPMorgan Chase (JPM)

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.

About Andrew Wilkinson 1023 Articles

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.

Interactive Brokers: Interactive Brokers offers direct market access to around 80 electronic global markets from a single account. Successful traders and investors understand that superior technology and lower trading costs can result in greater returns. For 32 years we have been building direct access trading technology that delivers real advantages to professionals worldwide. With consolidated equity capital of US $4.4 billion, IB and its affiliates exceed 1,000,000 trades per day. In addition, our prudent and conservative risk policies make Interactive Brokers a safe haven for your money. Discover some of the reasons why IB, the largest independent US broker/dealer, is the professional traders' and investors' choice.

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