JPM to Release Earnings on October 12, before the market opens option traders are expecting a ± 2.5% move

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JP Morgan Chase & Co. (JPM) is scheduled to release earnings on October 12, 2018, before the market opens, and will hold a conference call at 8:30 AM ET on the same day. The stock currently trades at 114.85, which is 8.0% higher than the close following its last reported earnings, trading with a range of 105.14 to 119.24 since that time.

Expected Price Volatility

Currently, option traders are expecting a ± 2.5% move for this earnings, and during the previous earnings release, the stock experienced a -0.5% move. Over the last 12 quarters, the absolute average move has been ± 1.5%, with a minimum move of 0.3% and a maximum move of 4.2%. JPM has only experienced 2 larger-than-expected earnings moves in the last 12 quarters.

Earnings Price Pattern

The MarketChameleon earnings price pattern has detected two notable historical trends.
2 Weeks Before Earnings:For each of the last 5 quarters, JPM stock price has gone up in the 2 weeks before earnings. It has had an average gain of +2.3% during that span.
2 Days Before Earnings:For each of the last 5 quarters, the stock price has gone up in the 2 days before earnings. Over that period, it has an average gain of +0.7%.

Earnings Option Strategies

MarketChameleon's option strategy analysis shows that selling out-of-the-money puts the day before earnings had 83% winning occurrences, for an average gain of +70.7%. Additionally, selling at-the-money straddles resulted in 83% winning occurrences, for an average return of +36.3%.

EPS Estimate

Analysts are currently expecting JPM to report an earnings of $2.27 per share, compared to $1.76 for the same quarter last year. Revenue is expected to come in at $27.7 billion versus $26.2 billion for the previous year.



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