Kevin Kelly's JPMorgan Options Trade

Speaking on Bloomberg Markets, Kevin Kelly of Recon Capital Partners said that investors should consider hedging a long position in JPMorgan Chase & Co. JPM after a sharp move higher. He added that he would also consider a short position in the name, using options.

He explained that JPMorgan has moved 14 percent in the last 5 days, compared to a move of 7 percent in Financial Select Sector SPDR Fund XLF.

Kelly believes that it might pullback after it outperformed its peers significantly and he wants to buy the February 75/67.50 put spread for $1.55. The trade breaks even at $73.45 or 7.45 percent lower and it can make a maximal profit of $5.95.