Options Traders Blast JPMorgan Chase Stock After Earnings

JPM options volume is running at seven times the intraday average

Digital Content Manager
Jan 14, 2022 at 10:29 AM
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JPMorgan Chase & Co. (NYSE:JPM) is weighing on the Dow this morning, last seen down 4.9% at $160.13 at last check, despite posting better-than-expected fourth-quarter earnings and revenue. This marked the bank concern's worst earnings win in roughly two years, though, which was in part attributed to a 13% dip in trading revenue.

In addition, CFO Jeremy Barnum said higher expenses and wage inflation could negatively impact the company going forward. What contributed to the earnings beat was a large credit reserve release; without it, earnings would have come out to $2.86, and short of estimates.

Today's bear gap only adds to the volatile price action JPMorgan Chase stock has seen since its Oct. 25, all-time high of $172.95. The shares are facing off with their 200-day moving average, a trendline that once held as support but was breached in late December. Longer term, JPM still sports a 12.9% year-over-year lead. 

The options pits are optimistic. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), JPM sports a 50-day call/put volume ratio of 2.64, which sits higher than 92% of readings from the past year. In other words, long calls have rarely been more popular.

The equity is getting blasted in the options pits today. So far, 52,000 calls and 42,000 puts have crossed the tape, which is seven times what is normally seen at this point. Most popular is the January 160 call, followed by the 1/14 157.50-strike put, with positions being opened at the latter.

 

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