JPMorgan Chase’s CEO is wary amid higher inflation and interest rates
JPMorgan Chase & Co. (NYSE:JPM) reported second-quarter earnings and revenue topped analysts’ estimates due to a 52% increase in investment banking fees. However, shares of the major financial institution are 1.9% lower at $203.05 at last glance, after CEO Jamie Dimon highlighted potential future risks, namely inflation and interest rates.
Intraday options volume is exploding after the results. So far, 77,000 calls and 50,000 puts have crossed the tape, which is four times what is normally seen at this point. Most popular is the weekly 7/12 205-strike call, which expires at the end of today’s session.
A broader look shows that bullish bets have been the more popular pick of late. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), JPM sports a 10-day call/put volume ratio of 1.81 that sits higher than 78% of readings from the past year.
Since hitting a July 3 record high of $210.38, JPMorgan Chase stock began to drawdown on the charts. The security is now on track to snap a three-week winning streak and set to close below the $204 level for the first time since late June. The equity’s 20-day moving average is keeping today’s losses in check, however, and JPM still sports a 36.4% year-over-year gain.