JP Morgan (JPM) Offering Possible 27.02% Return Over the Next 7 Calendar Days

JP Morgan’s most recent trend suggests a bullish bias. One trading opportunity on JP Morgan is a Bull Put Spread using a strike $99.50 short put and a strike $94.00 long put offers a potential 27.02% return on risk over the next 7 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $99.50 by expiration. The full premium credit of $1.17 would be kept by the premium seller. The risk of $4.33 would be incurred if the stock dropped below the $94.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for JP Morgan is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for JP Morgan is bullish.

The RSI indicator is at 54.6 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for JP Morgan

JPMorgan investment arm invests in Dallas private equity backed eyecare group
Wed, 09 Jan 2019 20:06:35 +0000
The capital will help the Dallas private equity firm build its Acuity Eyecare Group up to 300 locations over the next few years.

Will Citigroup’s Operating Efficiency Continue to Improve?
Wed, 09 Jan 2019 18:00:02 +0000
Citigroup: What to Expect in the Fourth Quarter

(Continued from Prior Part)

## Operating leverage to drive efficiency

Citigroup (C) managed to improve its efficiency ratio in the first three quarters. During the last reported quarter, Citigroup’s efficiency ratio was 56.1%—down from 56.6% in the same quarter the previous year. Citigroup’s efficiency ratio was 57.3% at the end of the third quarter on a year-to-date basis. The improvement reflects operating leverage, better expense management, and improved asset quality.

Citigroup’s management expects the cost of credit to remain stable during the fourth quarter and increase the efficiency ratio by 100 basis points. Management expects the fiscal efficiency ratio to be 57.3%. Although the fourth-quarter revenues are expected to remain pressured, the expenses are projected to decline.

## Balance sheet 

Citigroup’s continued focus on expanding its quality loan portfolio and deposits could strengthen its balance sheet. During the last reported quarter, Citigroup’s total assets rose 2% year-over-year to ~$1.93 trillion due to higher deposits, increased lending, and new assets. However, getting rid of some legacy assets partially offset the growth.

An improving macro backdrop, like a healthy job market and increased wages, could boost banks’ (XLF) deposits. Rate spreads are expected to drive lending. JPMorgan Chase (JPM) and Bank of America (BAC) also reported increased loans and deposits.

Continue to Next Part

Browse this series on Market Realist:

* Part 1 – Will Citigroup Beat Analysts’ Fourth-Quarter Expectations?
* Part 2 – Citigroup’s Revenues Could Improve in the Fourth Quarter
* Part 4 – Citigroup Stock: Analysts’ Recommendations

Why JPMorgan Stock Will Continue to Perform Well in 2019
Wed, 09 Jan 2019 16:50:04 +0000
It was just downgraded by Jefferies to a ‘hold,” but based off of the last year’s performance, we predict that the stock will outperform the financial sector.

Citigroup’s Revenues Could Improve in the Fourth Quarter
Wed, 09 Jan 2019 16:30:02 +0000
Citigroup: What to Expect in the Fourth Quarter

(Continued from Prior Part)

## Analysts’ estimate

Analysts expect Citigroup (C) to report total revenues of $17.8 billion, which implies an increase of 3.1% YoY (year-over-year). Citigroup’s management expects the revenues to increase on a YoY basis during the fourth quarter despite the expected sequential slowdown in the ICG (Institutional Clients Group), equity, and fixed income market revenues.

Analysts expect JPMorgan Chase’s (JPM) revenues to increase 6.7% during the fourth quarter. Bank of America’s (BAC) revenues are expected to increase 4.6%. However, Wells Fargo’s (WFC) revenues are expected to remain soft.

## Growth drivers

Citigroup’s fourth-quarter revenues are expected to benefit from growth in loans and deposits and rate spreads. Latin America is expected to sustain the momentum with projected growth in mortgage, commercial, and card loans and increased deposits.

The banking revenues in the ICG segment are projected to improve on a YoY basis due to continued momentum in Treasury and Trade Solutions, Private Bank, Securities Services, and Corporate Lending. The investment banking revenues are expected to improve in the fourth quarter on a sequential and YoY basis due to the backlogs. Lower market activity will likely impact the underwriting fees and the overall segment.

Citigroup’s Retail Banking revenues, excluding mortgages and retail services in the North America Consumer Banking segment, are expected to improve due to growth in deposit spreads and investments. Mortgage revenues could continue to slide, which reflects lower origination activity and higher funding costs.

Continue to Next Part

Browse this series on Market Realist:

* Part 1 – Will Citigroup Beat Analysts’ Fourth-Quarter Expectations?
* Part 3 – Will Citigroup’s Operating Efficiency Continue to Improve?
* Part 4 – Citigroup Stock: Analysts’ Recommendations

Citi (C) to Sell Entire Stake in Chinese Securities Venture
Wed, 09 Jan 2019 15:05:03 +0000
Citigroup (C) is looking to sell its entire stake in Chinese securities venture, Citi Orient Securities Co Joint venture, reports Reuters.

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