Skip to main content

Market Overview

Dan Nathan's JPMorgan Chase & Co. Trade

Share:
Dan Nathan's JPMorgan Chase & Co. Trade

Dan Nathan recommended on CNBC's "Options Action" a bearish options strategy in JPMorgan Chase & Co. (NYSE: JPM).

He said that JPMorgan Chase & Co. is the only bank that is trading significantly above its August lows, and he can't understand why it is showing such a relative strength. Nathan believes that the banking sector could struggle after the stress test results and after the Q1 earnings so he wants to set up a position that can last until the April Expiration.

Related Link: JPMorgan Rockets Higher

Nathan wants to sell the February 19, 55 strike put for $0.60 and buy the April 55 put for $2.60. If the stock stays above 55 at the February 19 expiration, he is going to own the February 55 put for $2. The trade starts to make money below $53 or 7.8 percent lower from the current price.

 

Related Articles (JPM)

View Comments and Join the Discussion!

Posted-In: CNBC Dan Nathan Options ActionShort Ideas Options Markets Media Trading Ideas

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com