JP Morgan Chase is trying to hold key support, and traders are getting nervous.
optionMONSTER's Depth Charge monitoring program detected the purchase of 12,000 October 58 puts, most of which fetched for $1.54. Volume was 40 times open interest at the strike, an indication new positions were initiated.
JPM is down 0.77 percent to $59.52 in afternoon trading and has lost 7 percent of its value in the last month. It's been falling along with other banking stocks as investors roll back expectations for a Federal Reserve interest-rate hike. Ally Financial , another company in the sector, gave our premium subscribers a quick 100 percent gain following bearish paper last week.
JPM is sitting near the same area where it bounced in March before running to new all-time highs over the summer. That could make some chart watchers worry about further downside if support is broken and help explain today's activity. Earnings are also shortly before the next earnings report on Oct. 13.
Overall option volume is twice the daily average so far, with puts accounting for almost two-thirds of the total.
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