JPM has plenty of technical support in place
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Bank giant JPMorgan Chase & Co (NYSE:JPM) hit a fresh record high earlier this month, surpassing its previous November peak after maintaining momentum from a 2% post-earnings move higher on Wednesday. Technical support is piling up, as those November highs were in the round $250 vicinity and correlate with the $700 billion market cap level.
Since October 2023, JPM has seen a steady build in short interest, with levels nearing their March 2020 Covid highs. A slight rollover in December may point to more short covering in the weeks and months ahead.
Total call open interest (OI) on JPM is in the low 25th percentile of its annual range, whereas put OI is in the 56th percentile. Options are affordably priced though, per the equity’s implied volatility (IV), which sits lower than 83% of readings from the past year and below its 63-day historical volatility (HV).
Our recommended call option has a leverage ratio of 11.9 and will double on an 8.3% rise in the underlying security.