GO
Loading...

Is Now the Time to Bank on JPMorgan Earnings?

Are options traders banking on blowout earnings from JPMorgan ?

JP Morgan Chase
CNBC.com
JP Morgan Chase

If today's price action in JPMorgan calls is any indication, the answer is a resounding “Yes.”

The stock has rallied almost 20% the last 17 trading days. And yet, traders continue to makes bets that there is more upside to come.

"The nine of the top ten most active options in JPMorgan are all calls," noted Mike Khouw, Options Action Contributorand Cantor's Fitzgerald’s Director of U.S. Derivatives.

In one trade, an investor paid $1.00 buying the March 46/50 call spread, a bet that pays out if JPMorgan stock trades above $47.00 by March expiration.

"Given how well fixed income has done, people are expecting a good number. And CEO Jamie Dimon knows how to talk a good game," said FBR Capital Markets Analyst Paul Miller (BUY RATING).

Still, Miller says some traders could be setting themselves up for disappointment.

"The private label putback issue has not gone away, and that could weigh on the stock going forward."

Watch Options Actionon CNBC Fridays 5:30pm ET, Saturdays 6a ET and on Sundays 6a ET

Questions, comments send them to us at: optionsaction@cnbc.com

Contact Options Action

  • Showtimes

    Fridays, 5:30p ET
    Saturday, 6a ET
    Sunday, 6a ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

Latest Video

Options Action Daily Reports

Sponsored Related Links

More on thinkorswim by TD Ameritrade

  • Make sure you’re always keeping up with the market with up-to-the-minute news and breaking stories. Move on possible breakout stocks and options with potential opportunity. Plus, get in-depth analysis on futures and forex in one seamless, integrated experience. Join TD Ameritrade and trade commission-free for 60 days + get up to $600 cash.

You Make the Call

  • Mike Khouw, Options Action trader, shares his view on News Corp stock on the heels of testimony from Rupert Murdoch before British Parliament.

  • Do you have a question for the Options Action team? Options Action selects a viewer's question and gives the answer on the show's Make The Call Web Extra video.