Trade Alert – (JPM) April 21, 2025 – BUY

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

 

Trade Alert – (JPM) – BUY

BUY the JP Morgan Chase (JPM) May 2025 $190-$200 in-the-money vertical Bull Call debit spread at $8.70 or best

 

Opening Trade

4-21-2025

expiration date: May 16

Number of Contracts = 13 contracts

I said in the letter earlier that I would be selling every 3,000-point rally in the Dow Average and buying every 3,000-point dip.

Well, here we are down 3,200 points in only four days. Quality blue chips are on sale. That includes JP Morgan (JPM), the bluest of the blue-chip banks, which, as a sector, is all holding up incredibly well.  JP Morgan also just announced very strong earnings off the back of robust trading revenues, which all the banks are now raking in.

I am therefore buying the JP Morgan Chase (JPM) May 2025 $190-$200 in-the-money vertical Bull Call debit spread at $8.70 or best

Don’t pay more than $9.00 or you’ll be chasing on a risk/reward basis.

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and increase your bid by 10 cents with a second order.

If you live in a foreign time zone when the US stock market is closed, such as Australia, or don’t want to sit in front of a screen all day, simply enter a spread of Good-Until-Cancelled orders overnight, like  $8.70, $8.80, $8.90, and $9.00. You should get done on some or all of these.

To learn more about the company, please visit their website at
https://www.jpmorganchase.com

This is a bet that JP Morgan Chase (JPM) will not fall below $200 by the May 16 option expiration in 19 trading days.

Here are the specific trades you need to execute this position:

Buy 13 May 2025 (JPM) $190 calls at………….………$39.00

Sell short 13 May 2025 (JPM) $200 calls at…………$30.30

Net Cost:………………………….………………………..……..$8.70

Potential Profit: $10.00 – $8.70 = $1.30

(13 X 100 X $1.30) = $1,690 or 14.94% in 19 trading days.

 

 

If you are uncertain about how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep-in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.