JP Morgan (JPM) is up 89 cents to $36.27 in active trading of more than 11 million shares and the second best gainer in the Dow (behind Cisco) on reports the bank has cleared 70 percent of a bad position that so far caused the company to report a $2 to $3 billion in losses. Five minutes into trade, a multi-exchange sweep of 2,650 Weekly $37 calls traded on JP Morgan for 15 cents when the market was 13 to 15 cents. ISEE is reporting an opening buyer and apparently a bet that the stock will be trading north of $37 (2%) by the end of business Friday. 7,750 Weekly 37 calls now traded on JPM and the market is 19 to 21 cents. Total volume is 36,000 calls and 18,000 puts. 30-day at-the-money implied volatility is easing 3 percent to 33 and down from about 41 when the stock found a bottom two weeks ago (6/4).
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.