Options profits: Take 35% gains on JPMorgan (JPM)
Today's Financial News - Posted September 29, 2008
The markets are highly volatile. It is creating fantastic profit opportunities. Thanks to JPMorgan’s (NYSE:JPM) wild action, options investors can cash in for gains over 35%.
By Andrew Snyder
Baltimore – (TFN): I am not an overly superstitious person, but when an omen presents itself, I pay attention.
At 9:30 this morning, the New York Stock Exchange was supposed to ring its opening bell, just as it does at the beginning of every trading day. Today, however, the bell refused to work. No matter how hard the button was pressed, the bell would not sound. It marked the start of a very bad morning on Wall Street.
Congress is working to pass a $700 billion piece of legislation designed to pull the world’s economy out of the gutter, yet investors are not buying. It is a slap in Washington’s face, showing most folks do not believe the emergency measures are going to be strong enough to pull us out of this mess.
The equities markets are plunging, the credit markets are locked, and banks are dropping one after another. The situation is not pretty, but it is most certainly creating profit opportunities.
JPMorgan (NYSE:JPM) is one of the few remaining banks with any shot of success. When it announced on Friday that it was buying the retail-banking assets of Washington Mutual, it caught the Street’s attention. I recommended that readers buy the company’s December 45 Calls (JPMLI.X).
It was a good call, as share price soared throughout the day and the price of the options went exponentially higher. With the Dow down by more than 300 points at times this morning and the European banking industry showing signs of cracking, it is no surprise JPMorgan’s share price has taken a hit.
Even so, the call options remain well into positive territory. If you followed my advice and bought the options, unload them now and lock in your profits. You should be able to sell for gains of over 35%. Not bad in just over a day.
There will be more and more profit opportunities as this situation works itself out. Keep an eye on the headlines, find the undervalued plays and invest accordingly. As long as there is movement, there is profit opportunity. The bigger the swings, the bigger the gains. For more on my thoughts about market volatility, click here.
Next Article: Royal Bank of Scotland (RBS) down 24%, despite bailout rumors
Be the first to leave a reply.
Your comments are welcome
Follow TFN via RSS or Twitter |
 |
 |
 |
Advertisement
Latest Headlines
- The Big Picture for Sinobiopharma, Inc. (SNBP)
- Beazer Homes USA, Inc. (BZH) and Hovnanian Enterprises, Inc. (HOV) up despite horrid housing news
- The FDA catalyst: 2010 moves in MannKind (MNKD), Roche Holding (RHHBY), Acorda Therapeutics (ACOR) show it still works!
- Steepest drop since Feb. 2009: Here we go again!
- Is the silver run over? Coeur d’Alene Mines (CDE), Silver Wheaton (SLW), Alto Group (ALTO), Hecla Mining (HL), Endeavour Silver (EXK) close down