Shares of JP Morgan are on pace to match their highest close since the start of May, and one trader is looking for more gains.
A trader bought 7,500 October 43 puts for $0.27 against open interest of 17,814 while selling 15,000 October 45 calls for the bid price of $0.06, according to optionMONSTER's systems. Open interest in the latter strike was just under 9,000 contracts, so it was a new position.
This could be a trader rolling up a short call position up and doubling its size, but it seems more likely that this is a new ratio spread . This would indicate that the trader sees the stock moving up to $45 but not beyond, as he or she would be effectively be short the stock at that point. (See our Education section)
JPM is up 2.45 percent today to $41.47 in afternoon trading. This matches the close from September 13, the highest since the start of May. Shares were down at a 2012 low below $31.
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