JPM Earnings Beats Estimates for January 14


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JP Morgan Chase & Co. (JPM) just reported earnings on January 14, 2020, before the market opened. Earnings Per Share (EPS) was reported at $2.57, after analysts had expected $2.35 per share. As a result, JPM opened up +0.5%, and closed for the day up +1.2% at 138.80. Since earnings was reported, the stock has traded in a range from 136.15 to 140.76.

Price Volatility Against Expectations

Ahead of earnings, option traders were expecting a ± 2.9% move for this date, so the earnings move of +1.2% represents an undersized move against the market. JPM has only experienced 3 larger-than-expected earnings moves in the last 12 quarters.

Earnings Price Patterns

The MarketChameleon earnings price pattern has detected two notable historical trends for after earnings.
1 Week After Earnings:For 10 of the last 12 quarters (83%), JPM stock price has gone up in the week following earnings. It has had an average gain of +1.2% during that span.
Week-After Boost:For each of the last 4 quarters, the stock price continued to go up the week after a positive earnings move. Over that time, the average week-after gain has been +2.1%.

Earnings Option Strategies

MarketChameleon's option strategy analysis shows that buying  Debit Call Sprd (L50C, S25C) one day after earnings and selling one week after earnings had 64% winning occurrences, for an average gain of +46%