Traders are betting that shares of JP Morgan will pop in the next week.
More than 5,000 June 58 calls were bought this morning for $0.22 to $0.32, according to optionMONSTER’s Heat Seeker tracking system. Open interest was a mere 11 contracts before the session began, showing that new positions were established.
These long calls lock in the price where the stock can be purchased for the next week no matter how far it might climb. They could be sold earlier at a profit if premiums rise with a rally before then, providing potentially significant leverage, but the contracts will expire worthless if shares are below $58 at the end of next Friday’s session.
— Option Monster