Mon Jan 23, 2017 10:59 am
Daily chart of JPMorgan Chase & Co. (JPM), $83.67.
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Trade: Under $83.10, we recommend buying 10 Feb $87.5/80 bear put spread (24 DTE). It closed at a mid-point of $3.64/share (debit of $3,640 on a 10-lot).
Strategy: Bearish gap down from multi-week consolidation and Breakout Bar Failure (-BBF) from base, with extended weekly chart. The financial sector is also weak, extended, and started to break down last week.
Max Gain: $7,500 – debit.
Max Loss: Cost of debit spread, but would be less with stop posted.
Stop Loss: $85.26
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