JPMorgan bounced off technical support levels today, and one trader is repositioning for the upside.
JPMorgan is down 0.56 percent to $40.98. Shares have been sliding over the last two months after hitting a 52-week high of $47.47. The support in the $40.50 area has been in place since early August. .
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More than 41,000 call contacts changed hands in one trade in what looked like a repositioning of bullish sentiment. One block of 20,583 June 44 calls went for $2.75, and seconds later the same-size block of the December 29 calls were sold for $1.97, according to OptionMonster's real-time systems.
Given the relative open interests, it appears that this trader was selling long calls in December and buying out in June. This shows that this large institutional trader remains bullish on JPMorgan and is looking for shares to push back up to the highs in the next few months
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Chris McKhann is an analyst and writer for OptionMonster.