Mike Khouw's JPMorgan Chase Trade

On CNBC's "Options Action", Mike Khouw suggested that investors should consider a bullish options strategy in JPMorgan Chase & Co. JPM ahead of earnings.

The company is going to report earnings on Thursday and Khouw thinks it would be a good idea to buy the December 97.50/105 call spread for $2.20. The trade breaks even at $99.70 or 2.87 percent above the current stock price. It can make a maximal profit of $5.30.