4 Trade Ideas for JP Morgan: Bonus Idea

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

JP Morgan Chase, JPM, comes into the week rounding higher out of a pullback to a higher low. It is reclaiming the 200 day SMA with the movement Friday as it rises. The RSI bottomed at the edge of the bullish zone and is now rising again with the MACD negative but about to cross up and into positive territory. There is resistance at 308.50 and 312 followed by 315 and 320 before 323 and 329.50 then the all-time high at 335.87. Support lower comes at 304 and 300 then 295. Short interest is low under 1%. The stock pays a dividend with an annual yield of 1.96% and we’ll trade ex-dividend beginning July 6th.

The company is expected to report earnings next on the morning of July 13th before the open. Open interest in the June option chain is biggest at the 270 put strike. On the call side it is biggest at the 320 strike. In the July chain the biggest open interest appears at the 285 and 265 strikes on the put side. It builds from 300 to a peak at 340 on the call side. Finally in the August chain, the biggest open interest is at the 300 strike then the 20 strike on the put side. On the call side it is biggest at the 320 strike.

JP Morgan Chase, Ticker: $JPM

Trade Idea 1: Buy the stock on a move over 308.50 with a stop at 298.50.

Trade Idea 2: Buy the stock on a move over 308.50 and add a June 300/285 Put Spread ($3.56) while selling the July 330 Call ($3.45).

Trade Idea 3: Buy the June/July 320 Call Calendar ($4.24) while selling the June 295 Put ($3.25).

Trade Idea 4: Buy the August 280/310/340 Call Spread Risk Reversal ($4.85).

Premium Content

The Best

The Rest Premium

Free Content

The Rest

Don’t miss out on the Memorial Day Sale. Get an annual subscription for 30% off. Subscribe here.

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 equities continue to show strength, regaining their swagger following a stumble to start the week.

Elsewhere, look for Gold to continue walking the fence between a downtrend and digestion in the uptrend while Crude Oil bounces around in tightening consolidation around $100/bbl. The US Dollar Index looks to continue to drift higher in broad consolidation while US Treasuries continue to test support and a possible continuation of their downtrend. The Shanghai Composite looks to continue digestion in the short term uptrend while Emerging Markets digest the new highs in their uptrend.

The Volatility Index looks to continue lower in the normal zone, giving a tailwind to equities. The charts of the SPY, the QQQ and the IWM continue to look extremely strong on the longer timeframe with a 8th positive week for the SPY. On the shorter timeframe the SPY, the QQQ and the IWM also look very strong, retesting all-time highs after working off some of the but overheated momentum levels. 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