Short-term bulls target JPMorgan

JPMorgan Chase
Adam Jeffery | CNBC

Earnings are flowing in the financials, and traders are looking for more upside in JPMorgan Chase.

OptionMonster's tracking systems showed buyers stepping in for a run to new highs by the end of the week. The July 56 calls ramped up with buyers for $0.10 and $0.11.

More than 6,700 traded against previous open interest of 1,873 contracts. These were definitely some cheap shots, with the potentially to really move if Jamie Dimon's ship keeps cruising.

These long calls lock in the price where shares can be purchased. They can provide significant upside leverage, but will expire worthless without a rally.

JPMorgan fell 0.15 percent to $54.89 yesterday and is sitting back near its peaks from late May. The July call buyers could be looking for more good numbers from the financial sector or simply betting the overall market will drift higher. Total calls in JPMorgan outnumbered puts by almost 51,000 to 18,500.

Earnings came out last week, and Citigroup reported Monday morning. Goldman Sachs reports today, followed by Bank of America tomorrow and Morgan Stanley on Thursday.

—By CNBC Contributor Pete Najarian

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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of Najarian owns JPM calls.