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 pulling back to support at what was both prior support and resistance, and the 20 day SMA. This pullback comes after a reversal at the 50% retracement of the move up off the October 2023 low. It has a RSI level in the bullish zone with the MACD possibly crossing down and positive. There is resistance at 264 and 270 then 277.25 and 281. Support lower sits at 256 and 252 then 248.50 and 245 before 240 and 236.50.0 Short interest is low 1%. The stock pays a dividend with an annual yield of 2.15% and will start to trade ex-dividend July 3rd.

The company is expected to report earnings next on July 15th. The June options chain shows large open interest at every 5’s strike from 260 to 235 on the put side, but focused at the 250 strike on the call side. In the July chain it is biggest at the 230 put strike and spread from the 260 to 285 strikes on the call side. Finally, the August chain has biggest open interest at the 220 put and 280 call strikes.

JP Morgan, Ticker: $JPM

Trade Idea 1: Buy the stock on a move over 262 with a stop at 254.

Trade Idea 2: Buy the stock on a move over 262 and add a 255/245 Put Spread ($2.25) while selling a July 285 Call ($2.35).

Trade Idea 3: Buy the June/July 280 Call Calendar ($2.75) while selling the June 245 Put ($2.00).

Trade Idea 4: Buy the August 240/265/280 Call Spread Risk Reversal ($1.35).

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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 heading into the unofficial start of summer, saw equity markets showing they could use a long weekend to recover.

Elsewhere look for Gold to continue its uptrend while Crude Oil continues to trend lower. The US Dollar Index continues a short term move to the downside while US Treasuries consolidate in their downtrend. The Shanghai Composite looks to continue in consolidation while Emerging Markets remain on the cusp of breaking consolidation to the upside.

The Volatility Index looks to continue in the normal range, but with an upside bias, removing the stimulus for equity markets to the upside. Their charts show short term strength on the longer timeframe with digestion in the shorter timeframes. The IWM continues to lag the SPY and QQQ in recovery in price and the shift to bullish momentum on the longer timeframe. The classic “V” recovery continues to build in all 3 Index ETFs as the SPY and QQQ close in on their all-time highs. Use this information as you prepare for the coming week and trad’em well.

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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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