Top Trades for Fri, 24 Jun 2022 12:10 – JPM and MMMB


    MMMB is stupidly cheap again at $1.22.  Small little company but a great value down here.

    I guess it's time to buy JPM again as we're at the magic 10x line as $117.69 is $335Bn and they make $35Bn a year so – silly…  

    In the LTP, let's:

    • Sell 10 JPM 2024 $120 puts for $18 ($18,000) 
    • Buy 25 JPM 2024 $110 calls for $19.75 ($49,375)
    • Sell 25 JPM 2024 $135 calls for $9 ($22,500) 

    That's net $8,875 on the $62,500 spread so the upside potential is $53,625 (604%) over $135 and we're being aggressive on the short put sale as I'm very comfortable with the target and it's rollable, etc.  After 152 years in business I think they'll be fine and they just passed their stress test – although they were in the bottom of the bunch but that's because they are poised a bit bullish and taking on risk – which I agree with