JPM – JPMorgan Chase & Co. – The earnings warm-up show failed to last the course this morning and a pre-market gain for the company surpassing estimates was quickly lost in the muddy waters of a slowing economy. Its shares are now lower on the day at $39.46 with investors eager to take advantage of the borderline intrinsic nature earlier. Volume at the soon-to-expire $40-strike calls bulged to 24,000 throughout the morning with sellers driving prices in early activity. More than half of today’s volume was driven by sellers hoping that these calls will expire worthless at the weekend. Commanding 95 cents right out of the gate this morning, these hot-cakes quickly turned cold as investors sold calls all the way down to 18 pennies. Right now they hold no value should the share price prevail through Friday’s closing bell.
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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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