JP Morgan Chase and Co (JPM) $33.14 +0.21%
Risk 13cents to make 87cents 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 past 2hrs. While that sort of move seems like a longshot, before the 2billion surprise loss announced last month, shares had spent 2 months north of $40. Interestingly the lot sizes are relatively small, nothing above 1000 contracts, and 94% of the flow has executed on the electronic, anonymous ISE. Despite the low net price, the premium outlay is approaching $400,000. ISE data shows the flow is marked double opening for a firm account.
Category: All Stocks, Banks, Large Cap Stocks
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About the Author (Author Profile)
Henry Schwartz is the president of Trade Alert LLC, a provider of real-time options analysis tools to leading Wall Street firms. His systems analyze hundreds of thousands of transactions per second to help professionals identify and interpret market activity in real time, supporting informed trading decisions and intelligent idea generation. He has held institutional trading and management roles with Bank of America, Bear Stearns, Salomon Brothers and the Hull Group, and made markets on the CBOE and AMEX floors in the US, and EUREX and MONEP overseas. Prior to founding Trade Alert, he led the electronic market-making group at Bank of America coincident with the launch of the International Securities Exchange. He received his bachelor’s degree in Economics from the University of California, San Diego and his MBA from NYU’s Stern School of Business.
