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Options Montage: JPM sees another 20% equity upside from here

Moomoo News ·  Feb 8, 2021 12:31  · Exclusive

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by Eli, Tommy

$JPMorgan Chase & Co(JPM.US)$ sticks to its bullish outlook. Main three points to consider as follows:

  1. The de-risking that has already taken place by institutional investors should provide markets with a "cushion" in case retail mania slows down.

  2. Two of JPM's frameworks see another 20% equity upside from here.

  3. Hedge downside with credit volatility as it is much cheaper than equity. 

Market-wide option volume of 43.4m contracts was in line with recent average levels, with calls leading puts 11 to 6. Single stock and ETF products saw relatively heavy volume, while Index flow was moderate. 

Most active sectors included Consumer Cyclicals, Health Care and Technology while Industrials and Telecommunications were relatively light. Of the 3,762 stocks with listed options, 2,495 (66%) closed higher, and 1,174 (31%) lower. Among the 500 most liquid single stocks, 30day implied volatility was lower for 344 and higher for 118. Unusual total option volume was observed in $Snap Inc(SNAP.US)$, $Pinterest Inc(PINS.US)$, $Zoom Video Communications Inc(ZM.US)$$Peloton Interactive Inc(PTON.US)$ and $Qualcomm Inc(QCOM.US)$.

Notable bettings toward broader market indices ETF on 2/5

Individuals breakdown by sectors (2/5 notable bets)

Tech

Industrial

Consumer Cyclical

Financial

Communication Services

Healthcare

Energy

Basic materials

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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