I just closed a bearish position on this one and am jumping back in as it gets to resistance. I am basing resistance on the level of the “island reversal” that appeared at the end of October. I am extremely skeptical that JPM can get over the hurdle regardless of market direction.
I am buying a little extra time in this case because I would not be surprised to see prices consolidate around $34-35 for a few days while we wait for earnings season to kick off.
To the downside I think $28 is possible but $30 more likely as the point where I would close a profitable position. Depending on what is going on at the time I think closing on a break of the island reversal’s gap would be a good time to cut losses.
- The Ticker: JPM
- Target Price: 2.20 per share
- The Trade
- Buy to Open Mar 2012 31 Puts at 1.10 or better
- Trade Opened: Jan 4, 2012
Chart courtesy Finviz. Click to open larger.
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