JPM earnings 7/14 - swing calls, small positionWhen you see weekly chart, there is a clear consolidation after a sharp drop. Normally traders look for a second move lower. However on daily chart I see a pullback after a strong move up to 200sma. RSI went over 70 and is in bull support zone, and price has moved to bullish Ichimoku cloud. My readings indicate that the Fed has helped banks gain cash and it is possible investors will start buying this stock on good earnings news. I bought 8/21 expiry 105 calls. I might lose value due to IV drop but there is enough time for stock to move up to $113+.
Of course there is risk of stock going lower so keep your position small.
