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Jon Najarian: JPM Pushing $50 by March Expiration?

Looks like someone really thinks JPMorgan may make a run to $50 by March options expiration.

Someone bought 31,000 March 47.50 calls for $.80 and sold 31,000 March 50 calls for $.25, a net of $.55, or $1,705,000 in option premium to control 3.1 million shares from $47.50 to $50.

Call me crazy, but when someone does something that big and that obvious I have to play!

If you like that trade but want in for less, you may consider buying the March 47.50 calls for $.81 and selling the March 49 calls for $.43, a net outlay of $.38 for that $1.50 bull call spread.

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Turning attention elsewhere, rumors that Patriot Coal could get a buyout bid sparked volatility and volume in expiring Jan calls, particularly the Jan 25s, which I think we could agree are just short covering. They're squeezing hard, as these Jan 25s jumped from $.02 to $.29, but before I hold longs into the weekend, I want to see more volume in Feb calls.

The open interest at Feb 25 strike is over 11,200 but only 1,570 contracts traded, so not really a committment to PCX takeover rumor. On the other hand, the 2,200 calls traded at the Feb 24 strike are nearly matching the open interest, so far more interesting to us.

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I NEVER force trades on, so with Peabody Energy EPS next week, I think we can be patient, but for those that have to have something on, I would spread Feb 23 calls against Feb 25 calls for $.80 debit. That's buying Feb 23s for $2.00 and selling Feb 25s for $1.20.

I have long call positions in JPM, no positions in PCX.

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Trader disclosure: On Jan. 21, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders;
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