July 28, 2016 at 8:40 am #6571
Setup: Magnet Trade
Price: Above 64.30
The stock had a large pre-earnings run, gapped up on earnings, and most importantly has held those levels. It’s been a time-based correction.
Pretty clear here that 67-69 is the magnet area… levels not seen since 2015.
On a shorter term timeframe, the most recent range lows are at 63.50. I think it’s possible for those to get breached and still have the trend intact. If you want to wait for a shakeout under those levels. that’s a good strategy.
My bullish thesis reallys tarts to fall apart if te close under the lows of the pre-earnings day, which is 62.60.
Attachments:You must be logged in to view attached files.August 12, 2016 at 11:42 am #6722
I missed the first move on this stock, but it’s making a round trip and starting a pb2ma and pb2bo pattern into 65.
It’s possible that the stock overshoots that level and comes back into 64 so I want to scale into the trade.
Now JPM, like the other big banks, have some macro newsflow around them. Simply put, the potential of rising interest rates is good for the fundamentals of the company. With the good jobs report last Friday, that caused the stock to spike up big as high jobs and wage growth mean higher interest rates. That’s going to be part of the risk/reward equation in this stock.
Now we do have a fed meeting coming up in September… so if a Fed chair starts talking about rate hikes, then we should see the stock come back and retest/breakout of 66.50
IWO Premium Order Ticket Type Asset Duration Strike C/P BTO JPM 16 Sep 16 62.5 Call STO JPM 16 Sep 16 67.5 Call Total Debit:: 2.8
I will add to the trade at 2.20, and will stop out on a close under 62.50.August 29, 2016 at 2:48 pm #6857
Finally got the breakout I’ve been wanting… I’m going to slightly restructure the trade to take profits and keep a runner on *just in case*
So first, close out the Sep call spread:
IWO Premium Order Ticket Type Asset Duration Strike C/P STC JPM 16 Sep 16 62.5 Call BTC JPM 16 Sep 16 67.5 Call Total Credit: 4.07
And now I’m going to buy some Sep lotto tickets:
IWO Premium Order Ticket Type Asset Duration Strike C/P BTO JPM 16 Sep 16 69 Call Total Debit: 0.15
Why the 69 strike?
That’s the big magnet level coming into play from last year. If we get a jam into that level headed into opex, it’s a little extra on top and will allow a cheap roll further out in time.
Long term, the weekly chart is a massive range… if we do see it run I want to stay involved as long as possible.September 23, 2016 at 10:42 am #7009
Runner call expired worthless.
- You must be logged in to reply to this topic.