Market Overview

Mike Khouw Sees Unusual Options Activity In JPMorgan Chase & Co.


On CNBC's Options Action, Mike Khouw spoke about unusually high bullish options activity in JPMorgan Chase & Co. (NYSE: JPM) ahead of earnings report on July 14. More than 100,000 call options contracts were traded on Thursday, which is twice the daily average call options volume.

The most of the Thursday's volume happened in the July 67.5/70 one by two call spread. The traders bought 20,000 contracts of the July 67.5 calls and sold 40,000 contracts of the July 70 calls and paid around $0.40 for the structure. Khouw added that the size of the spread is approximately equal to the average move on the earnings over the last eight quarters. He thinks that this is a smart way to make a bullish bet that the stock is going to move 5.5 percent after earnings.

Posted-In: CNBC Mike KhouwOptions Markets Media


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