On Friday’s CNBC’s Options Action, the crew analyzed the performance of the financial sector. Financials has reached a new 10 year high and the fundamentals looks strong for the sector. JPM is one of the highest growth financial companies and will most likely benefit from looser regulations and higher interest rates. With earnings coming next week, there is a possibility of a breakout higher. Expecting a move higher, Michael Khouw suggested buying a Dec 97.5/106 Call Spread for a $2.20 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: JPM Options Action