JPMorgan Chase will report earnings before the open on Friday, Oct. 14
A rough day for the finance sector and a recession warning from CEO Jamie Dimon are weighing on shares of blue-chip bank concern JPMorgan Chase & Co (NYSE:JPM). The equity was last seen down 1.1% at $103.87, set for its lowest close since November 2020. This marks a break below a floor at the $104 level, and puts the stock at a 34.7% year-to-date deficit. The drop comes ahead of JPMorgan's third-quarter earnings report, due out before the open this Friday, Oct. 14.
The equity's post-earnings history for the past two years isn't doing JPM any favors. The stock dropped after all eight reports, including a 6.1% dip in January, to average a move of 2.8%, regardless of direction. This time around, the options pits are pricing in a much larger 7.1% post-earnings swing.
Speaking of options pits, short-term players still favor calls. This is per JPMorgan Chase stock's Schaeffer's put/call open interest ratio (SOIR) of 0.81, which stands higher than just 20% of annual readings.
Analysts are also bullish. Of the 17 in coverage, 11 consider the stock a "buy" or better, compared to five "hold" ratings, and just one "sell." What's more, the 12-month consensus price target of $135.16 is a 30.5% premium to current levels. UBS already lowered its price target by $2 to $124 ahead of the bank firm's quarterly event, and this could lead to even more bear notes, should the bank concern disappoint in the earnings confessional.