The company reported a significantly better than expected result in the first quarter
Another winning season has started with the name of a blue chip bank JPMorgan Chase & Co. (NYSE: JPM) among the first to step into the spotlight. The company reported earnings of $ 4.59 per share for the first quarter – much higher than Wall Street’s expectation of $ 3.10 per share – and a 155% jump in earnings. The release of loss reserves and an increase in deals contributed to these results, although the bank also saw a sharp decline in trading activity from the record levels of the previous year. On the last review, the security is down 1.6% to trade at $ 155.42.
JPMorgan Chase stock struggled with overhead pressure at $ 159 last month after hitting an all-time high of $ 167.44 on June 2. Nevertheless, the share is supported by the 120-day moving average and has a healthy 61.8% lead over the previous year.
Analysts are overwhelmingly bullish on the security, with eight of the 13 reporting ratings “Buy” or better, while the remaining five said “Hold” or worse. Additionally, the 12 month consensus target of $ 167.23 is a premium of about 6% over current levels.
The option pits reflect this bullish sentiment, with an appetite for calls. This corresponds to JPM’s 10-day call / put volume ratio of 3.02 on the International Securities Exchange (ISE), the Cboe Options Exchange (CBOE), and the NASDAQ OMX PHLX (PHLX), which are in the 77th percentile of their annual bandwidth lies. In other words, calls are answered faster than usual.
Despite the negative price movements, this sentiment is only strengthened today. To date, 53,000 calls have crossed the band, double the intraday average. The most popular is the July 160 call, followed by the 157.50 call in the same series, both of which expire at the end of the week.
Now could be a good time to speculate about the next move in options for JPMorgan Chase stock. The security’s Schaeffer’s Volatility Index (SVI) of 23% is in the 15th percentile of its readings for the past 12 months, suggesting that option providers are currently pricing in low volatility expectations.