Charting Different Outcomes

The real earnings season kicks off with JPMorgan Chase (JPM) and Wells Fargo (WFC) tomorrow morning. That could play out two ways: JPM brings movement or volatility and WFC just treads water.

JPMorgan (JPM) Source: StockCharts.com View Chart » View in New Window »

Both charts are similar, but JPM sits right on a potential breakout and a good bit above support. This stock has the potential to move anywhere from $1 to $1.50. Options are close in pricing this in, but I believe there is an approach to play this one. I am going to buy the April 12 $49-$48 put spread along with 2x April 12 $49.5-$50 call spread. This will run around $0.70, although it only carries with it an upside of $1. I am also going to add a very small quantity of $49.50 straddles for $1.15....128 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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