4 Trade Ideas for JP Morgan: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

JP Morgan, $JPM, comes into the week moving back higher in a tight range over the 20 day SMA. It has Bollinger Bands® that are squeezed in, often a precursor to a move. The RSI is rising in the bullish zone with the MACD retrenching but positive. There is no resistance above 250. Support lower is at 243 and 240 then 235. Short interest is low at 1.1%. The stock pays a dividend with an annual yield of 2.02% and has traded ex-dividend since October 4th.

The company is expected to report earnings next on January 15th before the open. The December options chain shows open interest build from 250 to a peak at 230 on the put side. On the call side it is biggest at 260 then 240 with good size at 250 and 245 as well. In the January chain open interest is biggest at the 225 put strike and on the call side at 250 then 240. The February chain has open interest spread from 240 to 200 on the put side but focused at 250 and 255 on the call side.

JP Morgan, Ticker: $JPM

Trade Idea 1: Buy the stock on a move over 250 with a stop at 240.

Trade Idea 2: Buy the stock on a move over 250 and add a January 240/225 Put Spread ($3.20) while selling the February 265 Calls ($3.65).

Trade Idea 3: Buy the December/January 255 Call Calendar ($3.30) while selling the January 225 Put ($1.25).

Trade Idea 4: Buy the February 225/255/265 Call Spread Risk Reversal (90 cents).

Premium Content

The Best

The Rest Premium

Free Content

The Rest

If you like what you see sign up for more ideas and deeper analysis using the Get Premium button above.   

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the first week of December in the books, saw equity markets show strength with tech and large cap printing new all-time highs 4 of the 5 days. The small caps held their ground as well.

Elsewhere look for Gold to continue to consolidate in the uptrend while Crude Oil consolidates in a broad range. The US Dollar Index continues to drift to the downside in consolidation while US Treasuries hold in broad consolidation. The Shanghai Composite looks to continue the short term move higher while Emerging Markets continue their uptrend.

The Volatility Index looks to remain very low and stabilizing making the path easier for equity markets to the upside. Their charts look strong, especially on the longer timeframe. On the shorter timeframe both the QQQ and SPY continue to look powerful as they rack up more new all-time highs. The IWM is taking a pause in a bull flag, preparing for a possible all-time high as well. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus
Dragonfly Caps Blog