JP Morgan (JPM) loses $1.50 to $34.38 and is the biggest loser in the Dow Jones Industrial Average on no stock-specific news Thursday morning. Financials are relatively weak this morning and JPM had been trading sideways in a range around a 50-day moving average over the previous two weeks. Shares came under fire Thursday morning and the top options trade on the bank is a July 36 – 37 call spread, bought for 22 cents, 5000X. The might adjust a position or close, as open interest is sufficient to cover. Or, it’s possibly a bet that JPM will recover $37 per share by the expiration, or a 7.6 percent advance over the next 15 days. Earnings come into play the morning of July 13.
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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.