DailyPlay – Opening Trade (JPM) – June 9, 2023

JPM Bullish Opening Trade Signal

View JPM Trade

Strategy Details

Strategy: Long Call

Direction: Bullish

Details: Buy to Open 5 Contracts July 21st $140 Calls @ $4.13 Debit per contract.

Total Risk: This trade has a max risk of $2,065 (5 Contracts x $413) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $413 to select the # shares for your portfolio.

Trend Continuation Signal: This stock has been bullish and is expected to break out above an area of resistance.

1M/6M Trends:Bullish/Bullish

Technical Score: 7/10

OptionsPlay Score: 95

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

Please note that these prices are based on Thursday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

Investment Rationale

Despite tech names leading another rally (QQQ) and leaving the rest of the market (RSP) behind market breadth does continue to improve. 53% of S&P 500 stocks are now trading above its 200 D SMA, vs 35% a couple of weeks ago. This adds support to confirm the break above $4200 on the S&P 500 can hold. Tomorrow’s close will be an important milestone in solidifying the bullish trend that was kicked off this week. For adding to our long exposure we look to financials. JPM has been leading the pack within financials, the only major bank that has outperformed its sector over the past 9 months. Trading just below its $143 resistance level, JPM is primed for a potential breakout. We are positioning for the breakout above this key resistance level up to its $163 resistance area. With IV Rank under 5% options are inexpensive so I’m looking to Buy the July $140 Calls @ $4.13 Debit. 

TSLA is on watch to potentially cut losses as our initial thesis that the $205-210 resistance area as a turning point has not held. 

JPM – Daily