Implied Volatility Jumps as J.P. Morgan Falls (JPM)

Shares of J.P. Morgan Chase & Co. (NYSE: JPM) are lower on the session by 1.14%, currently trading at $37.20. Shares were higher earlier in the session, touching a high of $38.00 around 11 a.m., but have since fallen on a report that the SEC is considering an investigation into JP Morgan's dealings with hedge fund manager Magnetar.

Puts are active since the ProPublica report hit the tape. The November puts are quite active now, namely the $35.00 and $36.00 strikes, which have traded 12,000 and 7,300 times, respectively. Implied volatility has jumped as well, rising from 29.5% prior to the report to 35% now.

This indicated that much of the options flow has been buying.

JPMorgan Chase & Co. is a financial holding company. JPMorgan Chase's principal bank subsidiaries are JPMorgan Chase Bank, National Association, a national banking association with United States branches in 23 states, and Chase Bank USA, National Association, a national banking association that is the Firm's credit card-issuing bank. JPMorgan Chase's principal nonbank subsidiary is J.P. Morgan Securities Inc., its United States investment banking firm.