How To Play JPMorgan Chase's Earnings

Greg Harmon was recently a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

Dragonfly Capital Founder Greg Harmon discussed JPMorgan Chase & Co. (NYSE: JPM) on the show.

Harmon noted that JPMorgan was a low volatility stock that often moved less than 2 percent amid earnings reports.

The $62.50 level was seen as a “wall” for the shares, however, Harmon felt there were ways to play JPMorgan.

Weekly options had a “huge amount of open interest at $62.50,” according to Harmon, and a large amount below that level.

Harmon thought traders could use a 1x2 Call spread to play the upside using a $62/$63 spread that would allow for high leverage with low risk.

JPMorgan reports earnings on Tuesday and recently traded at $62.19, up 0.79 percent.

Listen to the show here: