JPMorgan Chase & Co. (JPM) is the largest US bank. It has helped lead the financial sector to a stellar performance so far in 2024. Here are a couple options plays to consider, writes Bret Kenwell, US investment analyst at eToro.
JPM had a strong reaction to its earnings report earlier this month, with the stock rallying back to the $220s. Lately, resistance has been in play around $225.
Chart as of the close on Oct. 28, 2024. Source: eToro ProCharts, courtesy of TradingView
If JPM can close above this level, it could trigger a breakout and open up new highs for the stock. However, if this level remains resistance and can’t be broken, shares may spend more time consolidating or may even pullback.
Investors who believe shares will break out — or those who are waiting for the potential breakout to happen first — can participate with calls or call spreads. If speculating on the breakout rather than waiting for it to happen first, consider using adequate time until expiration. For investors who would rather speculate on resistance holding, they could use puts or put spreads.
