JPM Options Flow Indicates Bullish Sentiment Ahead of Expiry

The options flow data from JPMorgan Chase & Co. suggests that investors are taking on bullish positions ahead of the Friday expiry.

A review of Tuesday's options tape reveals a decisively bullish lean, with a call/put ratio of ~1.63x and 51,539 calls compared to 31,548 puts out of 83,087 total contracts.

The composition of these calls is notable, with a large number of new positions opened on the Sept 18 $355 call, which is only $2.09 out-of-the-money with JPM trading at $352.91.

This suggests that investors are paying for a sharp 3-day sprint through $355, and a separate, more patient camp is positioning for a ~6-9% rally through mid-October via the Oct 16 $375/$385 call spread.