By David Russell
JPMorgan Chase (JPM) gapped higher on the open and the bulls are looking for the megabank to keep on rocking.
(Click to enlarge)
optionMONSTER’s Heat Seeker tracking system detected heavy call buying in the name, most of which resulted from a single purchase of 40,000 April 44 contracts for $1.20 against open interest of 18,981. It was the largest single trade to cross our monitors so far today.
JPM rose 0.50 percent to $43.96 in morning trading and are up 10 percent in the past month. The stock appears to have broken through a resistance line running between its October and January peaks, which caused it to consolidate for almost two weeks between $43 and $43.60.
Today’s call buyers are looking for it to climb at least another 3 percent by expiration and close above its high from earlier in the year.
Overall options volume in JPM is already 19 percent greater than average so far in the session. Calls outnumber puts by more than 5 to 1, which reflects the bullish tone.
Disclosure: No positions
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