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Options market implies that JPMorgan and other megabanks may slash dividends after Fed stress test

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Spencer Platt | Getty Images

Options traders have placed bets implying that they expect the big banks to repeat what they did in the last crisis: slash dividends.

Take JPMorgan Chase, for instance. Options contracts tied to the biggest and most stable of the U.S. megabanks imply a 33% dividend cut by January, according to a trader who runs the options flow desk for a major brokerage. The New York-based bank currently pays a 90 cent quarterly dividend, or a total of $2.70 in the three quarters through January.

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