EARN25

Bank Stock Could Extend Record Highs

JPM has plenty of technical support in place

Jan 24, 2025 at 1:57 PM
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Subscribers to Schaeffer's Weekend Trader options recommendation service received this JPM commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

Bank giant JPMorgan Chase & Co (NYSE:JPM) hit a fresh record high earlier this month, surpassing its previous November peak after maintaining momentum from a 2% post-earnings move higher on Wednesday. Technical support is piling up, as those November highs were in the round $250 vicinity and correlate with the $700 billion market cap level.

JPM WT REpost

Since October 2023, JPM has seen a steady build in short interest, with levels nearing their March 2020 Covid highs. A slight rollover in December may point to more short covering in the weeks and months ahead.

Total call open interest (OI) on JPM is in the low 25th percentile of its annual range, whereas put OI is in the 56th percentile. Options are affordably priced though, per the equity’s implied volatility (IV), which sits lower than 83% of readings from the past year and below its 63-day historical volatility (HV).

 

Our recommended call option has a leverage ratio of 11.9 and will double on an 8.3% rise in the underlying security.
 

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