By Pete Najarian, co-founder of OptionMonster
NEW YORK -- Financials were on the move Tuesday, and the fast money was targeting JPMorgan (JPM).
OptionMonster's tracking systems detected heavy volume in the Weekly 52.50 calls expiring this Friday, with big trades hitting early for 11 cents to 15 cents. An even 16,000 traded in volume far above the strike's previous open interest of 2,685 contracts, indicating that new positions were established.
These calls lock in the price where shares can be purchased in the financial giant, letting investors cheaply position for a rally. These options also control the amount of money that can be lost if the stock falls.JPMorgan shares closed Tuesday up 1.19% to $51.13. The question is whether the stock can hold onto its gains, which is a tough one to answer with Syrian action looming and possible changes in monetary policy by the Federal Reserve. But the use of short-term options keeps risk to a minimum while ensuring that investors won't miss a pop in the shares. Overall calls outnumbered puts in the name by about 59,000 to 14,000, a reflection of the session's bullish sentiment. Najarian owns JPM calls.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV