JP Morgan (Symbol: JPM) is our newest Options Trade Of The Week here at Netpicks.
The S&P 500 has tested the 200 period moving average many times and every time that it has, price has rallied back to the upside not too long after.
Price has moved back to the 200 period moving average and held this zone and we are considering this area to be potential support. From support, we look for a rally in price. The 200 period moving average is one that is talked about quite a bit and many traders and investors look to this average as a line in the sand between bull market and bear market.
As a result, we are looking to lean bullish in JP Morgan given that the financial sector is a large part of the overall makeup of the market.
With the financial sector being such a big part of the overall market, I’m looking for a bullish trade on JPM that will give us multiple ways of making money.
This Weeks Options Play
Selling a put spread on JPM and in the video below, I will walk through our thought process on the trade and also piece it together from start to finish. Next week we will recap our open trades and also look to add a new trade of the week.
Questions? Contact Me
If you watch the video and have any questions, please feel comfortable reaching out to me at firstname.lastname@example.org. No question is silly and I have made it my mission to help anybody looking to trade in the Options market find some level of success.