Risk 13 cents to make 87 cents if JPM manages an 18% climb in the next 44days? Someone likes that bet, with nearly 30,000 July 38-39 call spreads being bought to open over the course of two hours in morning trading Thursday. While a move of almost 20 percent is a longshot, before the $2 billion surprise loss announced last month, shares had spent 2 months north of $40. Interestingly the lot sizes in today’s spreads are relatively small, nothing above 1000 contracts, and 94% of the flow has executed on the electronic, anonymous ISE. Despite the low net price of only 13 cents for the spread, the premium outlay is approaching $400,000. ISE data shows the flow is marked opening for a firm account.
Category: All Stocks
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.