JPMD trade ideas
JPM (DJI) - Reach near targetHumbled, we would like to thanks for your support who has already liked, commented and followed us.
Your support, strengthens us, to help in analyzing the market.
JPM (DJI) - Reach near target
The Behavioral Selling that Could Occur with JPMThe extreme space between support and resistance levels could trigger a behavioral risk with this equity. The impact that these big financials carry for the market and their importance for the overall security of the markets is critical right now. The extreme gaps of support and resistance leaves one to question, "Where can I safely enter?"
There isn't much under the chart. The magnitude of the drop could be devastating and go beyond fundamental reasoning...
JPM 1HRBEARISH ALT BAT
price need to follow Green Trend line & hit target
If price Breaks Red Trend line is where EXIT before SL hits
POTENTIAL SELL
JPM 4HRBEARISH Alt BAT
price need to follow Green Trend line & hit target
If price Breaks Red Trend line is where EXIT before SL hits
POTENTIAL SELL
$JPM strong upside continuation$JPM is continuing upside after the strong bounce off the 127 upside support to target 160
JPM short trade updated chartHere is the updated chart on JPM short trade I have posted on January, 12th. Brief pop above the resistance level to clear out any shorts. Turning around and dropping down below which proves to be a bull trap. From there, pretty steady down trend day after day. Today, hitting the first target. 10.5% down from the high. Next target is $117.20ish level and reaction is likely once it gets there. I expect a gap down tomorrow and hitting that second target pretty quick given the current market posture. Around $104.50 seems like a good support and that seems like a pretty good swing target and which will be around 26% from the high. How bullish the overall sentiment is, I can see very quick rush to the exit once it turns.
Have a good trade everyone,
T.
JPM Potential ReversalJPM has held the 20day so I am looking for a reversal. I will be paying attention to banking and specifically BAC and AXP because of the similar charts. I want to see a break of recent highs and the trendline above.
JP Morgan===24/1/2020
JP Morgan Chase & CO.
Waiting Buy 132.52 or 125.89
TP 1 : 144
STOP LOOSE : 122.39
Covered Calls For BeginnersI’m Markus Heitkoetter and I’ve been an active trader for over 20 years.
I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails.
They start trading and realize it doesn’t work this way.
The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades.
Covered Call For Beginners
For good reason, the covered call strategy is one of the first option strategies that new traders start trading.
This is an effective strategy that options traders often use to provide income on stocks they already own.
Questions to be considered in this article:
- What Is A Covered Call?
- Should You Trade It?
- Specific Example
Can You Do It In A Retirement Account, EG, IRA?
What Is A Covered Call?
A covered call is an options strategy used traders to produce income on stocks on long stocks held in their portfolio.
This strategy is used by traders who believe that stock prices are unlikely to rise in the short term.
A covered call strategy is defined as holding a long position in stock while simultaneously selling a call option on that same asset.
This strategy can provide income to a trader who is long term bullish on stocks but doesn’t believe there will be a significant increase in price immediately.
A covered call will limit a trader’s potential upside profit if there is a significant move in the price of the stock upwards.
This strategy provides little to no protection if the asset price moves downwards.
Covered Call Example
For the specific example that we’re going to cover today, we’ll take a look at JP Morgan JPM .
The price information reflects the price of JPM back in July at the original time of writing for this guide but is just being used as an example
If you were holding JPM stock in your portfolio before the pandemic, chances are that you are currently underwater.
DISCLAIMER
***For the purpose of full transparency, I do not own or hold any JPM stocks*** I typically only hold stocks between 5 and 25 days.
Stock Price Movement Recap
For this example, we’re going to assume that I own 100 shares of JPM . If I were to purchase 100 shares for $96 it would mean that the capital requirement for this position is $9600.
You’re probably familiar with the way profits move in relation to stock prices… but just to be safe:
- If the stock increased to $106, or $10, I would earn $1000.
- If the stock increased to $116, or $20, I would earn $2000.
- If the stock decreased to $86, or -$10, I would lose $-1000.
How Does A Covered Call Work?
Sell one call option contract for every 100 shares of the underlying stock in your portfolio.
The contract selected would ideally have a short expiration date of 7 days.
You would choose an “out of the money” call at a higher strike than the current price of the stock.
When choosing this strike price, you would typically choose a price at least one standard deviation away from the current strike price. In other words, choosing a strike price that you do not believe the current strike price will exceed before the date of expiration.
If you’d like to learn more about this options strategy, or options in general, I have an awesome Options 101 Course.
What’s the benefit of having a Covered Call for the stocks in my portfolio?
It’s simple really.
When you sell a call option contract, you will receive a premium.
This strategy generates income when you don’t expect to profit from the movement of the underlying stock price.
In this example with JPM , I received a premium of $55 for selling a call option contract at the price of $116.
Provided that the underlying strike price does not move above $116, the contract will expire worthlessly and I will keep the premium I collected by selling the options contract.
Let’s take a look at how a covered call will affect your portfolio with the same stock movements.
- If the stock increased to $106, or moves $10, I would earn $1000 plus the $55
- If the stock increased to $116, or moves $20, I would earn $2000 plus the 55
- If the stock decreased to $86, or moves -$10, I would lose $-1000 but keep the $55 for a total loss of -$945
Why does this work?
If you take the entire amount of premium you received and divide it by the number of days between no and contract expiration, you come up with a number like this:
$55 dollars in 7 = $8(ish) per day.
This covered call contract is paying us $8 dollars per day.
If you take the $8 dollars, divide that by your total capital investment of $9,600 it equals 0.08%.
This may not sound too incredible, but… If we do some basic arithmetic and take 0.08% and multiply that by 360 trading days per year, you end up with a return of over 30%.
This is in addition to what you earned from the growth of the stock.
On some stocks, it’s possible to earn upwards of $20 per day.
This could increase annual returns in excess of 40% to 50%
Does this sound a little more exciting? YES!
Should you trade it? ABSOLUTELY!
BUT…. There is a risk associated with this strategy.
If there is a large movement of the underlying stock price that surpasses the strike price of your call option contract, you will be forced to sell your shares at this price.
This would limit your upside potential to the difference between the current stock price and the price of the call option contract.
Example: If the price of the stock went up to $117 (past the $116 call option) and the options contract expires, your stocks will be sold $117.
This means you would earn $1,100 + $55, or $1,155.
In other words, you would lose $100 for every $1 the strike priced moved above your call option contract.
The silver lining is that you can probably buy your stock back the next day if you wanted to hold them long term.
This type of trade can be taken inside of your retirement account such as an IRA, which provides you with another way to grow your account conservatively.
The fall may continueOn the 1 hour timeframe, the flag trend continuation model is formed. If the lower border of the pattern and the resistance level is 85-87$ are broken, I expect a fall. Conservatively, you can enter the short from breaking the lower border of the flag.
$JPM with a bullish outlook following earning release $JPM is projected with a bullish outlook after a positive under reaction following its earning release with the PEAD placing the stock in Drift A
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Potential short set up for JPMThis is a potential set up and not yet actionable unless you want to take an aggressive starting position. JPM has finally up to pre COVID price level. The run up recently has been too fast too sharp in my opinion. RSI is extreme over bought reading. Any marginal high will extend the PPO divergent high. Be careful trading this since the earning is coming up on this Friday before the bell. I can see rejection here or making a marginal new high and fade. That would be a bull trap and down move may be pretty swift. Down side target for me is the yellow trend line from COVID March low or the top of the gap at $112.55.
$JPM : JP Morgan Profit Surges On LowerJPMorgan profit surges on lower loss serves , investment banking strength
JPMorgan's net income rose 42% to $12.1 billion or $3.79 per share , in the quarter ended Dec . 31 from $8.5 Billion or $2.57 per share , a year earlier.
So from techinc analysis we can see more wave bullish and Moving Average of Price read the price up when market open down today.
