Options Traders Blast JPMorgan Chase Stock After Earnings

The 60-day moving average is ready to contain today's losses

Digital Content Manager
Apr 12, 2024 at 10:41 AM
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JPMorgan Chase & Co (NYSE:JPM) broke the seal of another earnings season today. The bank name surpassed first-quarter earnings and revenue expectations, but noted net interest income could miss analysts' estimates for 2024. Shares are down 5% to trade at $185.68 at last check, making now an excellent opportunity for investors to buy the dip.

The security is taking a breather from an April 1, all-time high of $200.78, on track for a fourth-straight daily loss and worst day since March 2023. The 60-day moving average looks ready to contain these losses, though, and JPM still boasts a 10.5% year-to-date lead.

Short-term options traders have been more pessimistic than usual. This is per JPMorgan Chase stock's Schaeffer's put/call open interest ratio (SOIR) of 1.15 ranks in the elevated 94th percentile of its annual range.

Drilling down to today's options activity, 55,000 calls and 33,000 puts have already crossed the tape, which is seven times the intraday average volume. The most active contract is the weekly 4/12 190-strike call -- which expires are the close -- where new positions are being bought to open. 

 

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