If there’s a Jamie Dimon premium in JPMorgan, the pros say his testimony before Congress on Wednesday proves he’s worth it.
“He was a master,” comments trader Jon Najarian. “He was apologetic when he needed to be, he described the circumstances very well. And senators who went after him aggressively, found they weren’t properly armed.”
Trader Joe Terranova agrees and says the Street will walk away from the testimony with two big takeaways. “He inspired confidence. And JPMorgan is solidly profitable.”
As a result, the pros think the stock will march higher.
“After looking at the testimony our predilection is to be long rather than not. It seems like the worst is over.. From here, JPM should not run into a lot of resistance until 38,” comments trader Josh Brown
Joe Terranova says much the same. ““I suspect JPM goes to $38 before it goes to $32.”
Jon Najarian adds that options investors are making similarly bullish bets. “The JPMorgan June 35 calls went from 6 cents to 50 cents while he was testifying – that’s an endorsement.”
The traders also think Dimon's testimony could benefit banks broadly.
“Last week, net inflows into the XLF were sharply higher. That says to me investors want to come back to banks,” adds Brown. Dimon's testimony gives credence to the sentiment.
Because of that halo effect, Joe Terranova suggests putting money to work in your favorite financials, whatever they may be. “I added to PNC and Texas Capital Bancorp.”
Posted by CNBC's Lee Brodie
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Trader disclosure: On June 13, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders
Joshua brown is long JPM
Jon Najarian is long JPM
Joe Terranova is long PNC
Joe Terranova is long TCBI
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