Bank Stock Could Extend Record Highs

Core Insights - JPMorgan Chase & Co (NYSE:JPM) reached a new record high, surpassing its previous peak from November, following a 2% increase post-earnings [2] - The stock is supported by technical levels around $250, correlating with a market capitalization of $700 billion [2] - There has been a steady increase in short interest since October 2023, approaching levels seen during the March 2020 Covid crisis, indicating potential for short covering [3] Options Market Analysis - Total call open interest (OI) for JPM is in the low 25th percentile of its annual range, while put OI is in the 56th percentile [4] - Options are currently affordably priced, with implied volatility (IV) lower than 83% of the past year's readings and below the 63-day historical volatility (HV) [4] - A recommended call option has a leverage ratio of 11.9, which would double with an 8.3% increase in the underlying security [4]