by Ian Harvey
September 20, 2017
JPMorgan Chase & Co. (NYSE:JPM)
Here is an overview of JPMorgan Chase & Co. (NYSE:JPM) winning options call trade after becoming quite bullish. This options trade was recommended on Thursday, September 14, 2017 for members of “Stock Options Made Easy” in “Cut-to-the-Chase” Recommendations - Week Beginning Monday, September 11, 2017”, with the company stock price starting to climb Friday, and then continuing its upwards movement on Monday and Tuesday this week; producing potential profits within a very short period of executing the trade, and more likely to come!
JPMorgan Chase & Co. (NYSE:JPM), which is engaged in investment banking and financial services, is looking quite bullish at the moment, as is it is forming a new base; and is also working on a new pattern and saw its Relative Strength Rating improve to 69. (This unique rating measures market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the last 52 weeks stacks up against all the other stocks in our database.)
Shares of the banking giant just bounced from the 100-day moving average, and also experienced a series of closes below their lower Bollinger Band. A similar setup occurred back in mid-May and early June, and resulted in a massive upside rally for JPM. Add to this the fact that bank stocks in general have been strong, and it would seem all signs are pointing up for the security.
Short interest is extremely low for JPM with less than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting JPM.
Expect JPM shares to rise above $92.50 by the close on Friday, Oct. 20, when the contacts expire. It's been almost one month since they've explored this territory.
Call volume is also booming. In fact, calls are trading at 27 times the expected pace, thanks to heavy interest in the weekly 9/29 97.50-strike call, where 4,779 contracts have traded. Buy-to-open activity is possible here, so these bulls would be eyeing a move to $97.50 by next Friday's close, when the weekly series expires.
ETFs that hold JPM had net inflows of $8.83 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing.
According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Financials sector is rising.
It certainly seems like a good time to target this recommended call option.
Analysts and Hedge Funds Opinions
Zacks Investment Research raised shares of J P Morgan Chase & Co from a “hold” rating to a “buy” rating and set a $103.00 target price on the stock in a research note on Tuesday, July 18th.
Several other analysts have also recently commented on the company…..
Three analysts have rated the stock with a sell rating, fourteen have issued a hold rating and eighteen have given a buy rating to the company. The company presently has an average rating of “Hold” and an average target price of $85.59.
Several institutional investors have recently made changes to their positions in the stock, to name a few…..
J P Morgan Chase & Co has a 50-day moving average of $91.62 and a 200-day moving average of $88.99. The firm has a market cap of $319.80 billion, a PE ratio of 13.41 and a beta of 1.19. J P Morgan Chase & Co has a 52 week low of $65.11 and a 52 week high of $95.22.
** OPTION TRADE: Buy the JPM OCT 20 2017 92.500 CALL at approximately $1.15.
At the time of the recommendation, Thursday morning, J P Morgan Chase & Co stock price was sitting close to $91.00.
By close of trade on Tuesday, the stock was sitting at $93.94; having reached an intraday high of $94.36.
So, for members of “Cut-to-the-Chase” who managed to execute this trade recommended by Stock Options Made Easy; a nice tidy potential profit of 135% within a couple of days.
ACTION TO TAKE…….
As you would have by now realized, many of our trades are based on earnings predictions.
But not all – as you can witness in this recommendation.
Therefore, using a mix of recommendations based on earnings predictions, as well as companies that are moving due to certain catalysts; is very profitable.
The strategy used during earnings season is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.