4 Trade Ideas for JP Morgan Chase: Bonus Idea

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

JP Morgan Chase, $JPM, comes into the week in consolidation in a tight range at the 61.8% retracement of the post pandemic move higher. It is pushing against the top of the range. The Bollinger Bands® are flat with the RSI rising towards the bullish zone and the MACD moving towards positive. The 50 day SMA is also just overhead.

There is resistance at 116 and 118.50 then 119.30 and 123.40 before 125.25 and 128.40 then 133.15. Above that and it will make its first higher high since topping in October. Support lower comes at 113.50 and 112.25. Short interest is low under 1%. The stock pays a dividend with an annual yield of 3.46% and has been trading ex-dividend since July 5th. The company is expected to report earnings next on October 14th.

The August options chain show biggest open interest at the 115 and 110 strikes on the put side. On the call side it is biggest at 115 the large also at 118, 120 and 125. In the September chain it is big from 125 to 100 on the put side, biggest at 125. On the call side it is spread from 110 to 160. Finally in the October chain the open interest is spread from 120 to 90, biggest at the 105 and 90 put strikes. It is spread on the call side from 115 to 140.

JP Morgan Chase, Ticker: $JPM

Trade Idea 1: Buy the stock on a move over 116 with a stop at 113.

Trade Idea 2: Buy the stock on a move over 116 and add a September 115/110 Put Spread ($1.75) while selling the October 130 Call ($1.10).

Trade Idea 3: Buy the August/October 120 Call Calendar ($3.20) while selling the September 110 Put ($1.90).

Trade Idea 4: Buy the October 105/120/130 Call Spread Risk Reversal (35 cents).

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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 in August over, saw equity markets continue to show strength on both timeframes and on the cusp of a full blown reversal.

Elsewhere look for Gold to continue its short term move higher while Crude Oil moves lower short term. The US Dollar Index continues in a short term move lower while US Treasuries pullback in consolidation. The Shanghai Composite looks to continue in consolidation while Emerging Markets consolidate in the downtrend.

The Volatility Index looks to continue lower in the normal range 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 IWM and SPY are approaching key levels to confirm an intermediate term reversal. The QQQ continues to move higher after printing a higher high. 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.

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