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Options Traders Rush Bank Sector After Earnings

JPM and WFC are surging after beating on earnings and revenue

Digital Content Manager
Jul 14, 2023 at 10:46 AM
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Citigroup Inc (NYSE:C)JPMorgan Chase & Co (NYSE: JPM), and Wells Fargo & Co (NYSE:WFC) reported better-than-expected second-quarter earnings and revenue this morning. Driving the bank sector's strong results were higher interest rates as well as bond trading. 

WFC is leading the bunch, last seen up 2.8% at $44.91, while sporting a 12.8% year-over-year lead. Shares have also conquered the $44 level, which had kept a tight lid on gains since March. Options traders are already chiming in, with 77,000 calls and 29,000 puts exchanged so far, which is four times the intraday average volume. Most popular is the July 45 call.

Meanwhile, JPM is up 2.4% a fresh 2023 high of $152.24 at last check. The security has added 37.8% in the last 12 months, with support from its 40-day moving average. Drilling down to today's options activity, 162,000 calls and 52,000 puts have crossed the tape, or six times the volume that's typically seen at this point. Positions are currently being bought to open at the weekly 7/14 152.50-strike call, which is the most active contract.

Citigroup stock reversed its premarket lead, last seen down 0.9% at $47.25. Weighing on shares is a profit drop of 36% amid trading business weakness. C still hit its highest level in nearly a month right out of the gate, and added 10.4% in the past four months. Options volume is running at triple the intraday average, with 59,000 calls and 22,000 puts traded. The weekly 7/14 48-strike call stands out as the most popular choice.

 
 

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