Options Update: JP Morgan options expensive into dividend reduction

Posted Feb 24th 2009 9:00AM by Paul Foster
Filed under: JPMorgan Chase (JPM), Options

JP Morgan (NYSE: JPM) is recently trading at $20.56 in pre-open trading, above its close of $19.51. JPM reduced its quarterly dividend to 5c and provided an inline Q1 update. JPM March 20 straddle is priced at $5.55, June 20 straddle is priced at $9.55. JPM March option implied volatility of 123 is above its 26-week average of 89, according to Track Data, suggesting large price movement.

PNC Financial Services (NYSE: PNC) Financial Services closed at $24.61. PNC March option implied volatility is at 137; June is at 108; above its 26-week average of 77, according to Track Data, suggesting larger near term price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Tags: inthenews, JP Morgan, jpm, JpMorgan, option implied volatility, OptionImpliedVolatility, pnc, PNC Financial Services, PncFinancialServices