Options Traders Targeting JPMorgan Chase Stock's Post-Earnings Drop

Options volume is running at quadruple the intraday average

Deputy Editor
Apr 13, 2022 at 1:24 PM
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Financial institution JPMorgan Chase & Co (NYSE:JPM) stepped into the earnings confessional this morning, where it reported first-quarter earnings of $2.76 on revenue of $31.59 billion. While both figures topped Wall Street's forecasts, JPMorgan Chase stock was last seen trading down 2.6% at $128.04, after the company revealed profits were down 42% year-over-year thanks to sluggish deal volume and a decline in trading revenue.

JPM's options pits are flooding with activity today in response to the event. So far, more than 104,000 calls and 91,000 puts have crossed the tape, which is four times the intraday average and volume pacing in the 99th percentile of its annual range. The April 125 put and 130 call, the two most popular contracts, have new positions being opened at both.  

Options traders have been pessimistic of late. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock sports a 10-day put/call volume ratio of that stands higher than 93% of readings from the past 12 months. This means puts are being picked up at a faster-than-usual clip.

Today's losses were caught by the $126 level, which is an area JPMorgan Chase stock has managed to trade above since January 2021. After peaking in October, the equity experienced a tumultuous run on the charts, turning in five-straight monthly losses, and on track to nab its sixth. Year-to-date, JPM is down 19.4%.

JPM Chart April 13


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