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JPMorgan Stock Set to Gain on Cryptocurrency Buzz

JPM CEO Jamie Dimon has criticized bitcoin in the past

Feb 14, 2019 at 9:20 AM
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Despite CEO Jamie Dimon being a vocal critic of bitcoin, JPMorgan Chase & Co. (NYSE:JPM) said it's created a digital token, the JPM Coin -- the first among big banks. According to CNBC, early trials for the cryptocurrency are set to begin later this year, and will be used in lieu of international payments to large corporate clients, while also being tested in the big bank's securities transactions and treasuries services businesses.

At last check, JPM stock is up 0.2% in electronic trading. The shares are up more than 13% from their Dec. 26 15-month low of $91.11, closing last night at $103.09. However, the security has recently encountered familiar resistance at its 80-day moving average. Plus, this trendline is currently located near $105, a 61.8% Fibonacci retracement of the equity's December plunge.

Short-term options traders are more call-skewed than usual toward JPMorgan stock, per its Schaeffer's put/call open interest ratio (SOIR) of 0.60, which ranks in the 17th annual percentile. Drilling down, the March 110 call is home to peak open interest of 55,498 contracts. However, data from the major options exchanges confirms a significant amount of this activity was driven by call sellers, meaning they expect JPM to stay below $110 through March options expiration.

The bank stock has certainly been an attractive target for premium sellers over the past year. Its Schaeffer's Volatility Scorecard (SVS) is perched at a low 21 out of a possible 100, indicating JPM has tended to make smaller moves than what the options market had priced in during the last 12 months.

 

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