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Upside Trades Light Up JPMorgan

By Pete Najarian, co-founder of OptionMonster

NEW YORK -- JPMorgan (JPM)got a lift Monday, and the bulls were chasing it higher.

Option action was heavy across multiple time frames in the financial giant, ranging from very short-term contracts to others that are years into the future, according to OptionMonster's real-time tracking systems.

The Weekly 40.50 calls expiring this Friday stuck out early, as more than 18,000 traded while the stock wavered between $40.38 and $40.50. Several blocks went for 33 cents, but most priced for 36 cents.

There was also activity in the January 2014 45 and January 2014 55 calls as investors looked for a sustained move well into the future.

Calls lock in the price where traders can buy a stock, so they can generate significant leverage in the event of a rally. If the stock doesn't rise, the options will lose most or all of their value.

Shares rose 2.68% to $40.59 Monday. The stock has pulled back from around $43 and is now bouncing around its 200-day moving average.

Almost 133,000 contracts traded in the name Monday, about four times more than normal. Calls outnumbered puts by 100,000 to 30,000, a reflection of the session's bullish sentiment.

Najarian has no positions in JPM.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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