JPM = Whale of a Option Swing

You never intend on have a swing in this type of market environment, but sometime it working in your favor.  Risk Management is all we have in this business.  JPM SEP 52.50 C was purchased and then averaged into more during the eod tanking fest.  Level II was not showing any buyers and looked pretty gross, as Friday’s is a Pin The Option day.  JPM got bids the next morning and this trade was flipped In @ .55 average to Out @ .89.

This underlying security was hit by the news articles.

Thursday, Sep 19 9:19 AM Rare admission of guilt as JPMorgan pays $920M over Whale
Thursday, Sep 19 10:07 AM JPMorgan settles with OCC over credit-card collections
Thursday, Sep 19
1:22 PM
SocGen initiates coverage of the big U.S. banks
  • Bank of America (BAC -0.5%) and Citigroup (C +0.1%) are started at Buys with $17 and $59 price targets, respectively, and Wells Fargo (WFC -1%) and JPMorgan (JPM -1.1%) are begun at Hold with $45 and $56 price targets, respectively.

In addition to the upgrade to Strong Buy, Oja lifts his price target to $61 from $55

JPM JPM Option
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