Scott Bauer's JPMorgan Chase & Co. Trade Ahead Of The Earnings Report

Scott Bauer of Trading Advantage shared with the viewers of

his options strategy in

ahead of the earnings report. The company is going to report earnings on January 14 and Bauer thinks that there is not a lot of downside for the stock at the moment. Ha also thinks that

won't have blow out earnings on the upside. Bauer wants to sell the next week's 57.5 put and 59 call for a total premium of $2. He explained that the break even for the trade on the downside is at $55.5 and on the upside at $61. Below $55.5 and above $61 the trade starts to make losses, while his maximal profit is the collected premium of $2. Bauer added that he would be more than happy to buy

at $55.5 and he believes that $61 should be a very strong resistance.