JPMorgan Chase (JPM) Options Signal Bullish Bias: Call OI Dominance at $325 and $320 Suggests Upside Breakout Potential

• JPMorgan Chase (JPM) trades at $314.66, up 0.38% with volume at 2.07M, above 30D/100D/200D moving averages.
• Options data shows heavy call open interest at $325 and $320 strikes (expiring Friday), while put OI peaks at $310 and $300.
• RSI at 85.72 signals overbought conditions, but bullish momentum persists with MACD histogram rising above 5.12.

The stock’s technicals and options positioning align with a high-probability upside breakout scenario. With call open interest (OI) outpacing puts by a 1.03:1 ratio and key resistance levels near $317.33 (intraday high), JPM appears primed for a short-term rally driven by institutional positioning and earnings optimism.

Bullish Imbalance in OTM Options and Strategic Resistance Levels

The options chain reveals a striking imbalance in out-of-the-money (OTM) call options. For Friday expiration, the $325 strike leads with 3,943 OI, followed by $320 (3,754 OI) and $315 (3,125 OI). These strikes cluster near JPM’s 52-week high and above its 30D moving average of $301.77. Such heavy call OI suggests institutional investors are hedging or speculating on a near-term price surge, likely tied to the firm’s upcoming Q3 2025 earnings call and investor day event.

Conversely, OTM puts peak at $310 (3,818 OI) and $300 (2,780 OI), indicating a defensive stance against a potential pullback. However, the put/call ratio of 1.03 for open interest (366K puts vs. 357K calls) is only marginally bearish, reinforcing the market’s overall bullish bias. Notably, no block trades have been reported, suggesting the current options positioning is driven by retail and institutional accumulation rather than large-scale institutional bets.

News Flow Reinforces Bullish Narrative

JPMorgan’s recent news aligns with the options-driven optimism. The expansion of its Private Client offering to 53 new branches and a $1.50/share dividend hike (up 16.7% YoY) signal confidence in its capital management and growth strategy. Analysts from Truist, Citigroup, and Wells Fargo have upgraded JPM to Hold/Overweight, with a $316.91 average price target—just $2.25 below the $325 call-heavy strike.

The firm’s strategic partnerships, including the Plaid data agreement extension and ETF product launches, further bolster its competitive edge. However, mixed momentum signals (RSI at 85.72 and MACD above 5.12) suggest caution for short-term traders. A break below $301.51 (30D support) could trigger a retest of the 200D MA at $266.44, but the current setup favors a continuation of the bullish trend.

Actionable Trade Ideas for JPMOptions Strategy: For Friday expiration, consider buying the $325 call (OI: 3,943) as a high-conviction play. If the stock closes above $317.33 (intraday high), the $325 strike could see significant gamma-driven acceleration. Alternatively, the $315 call (OI: 3,125) offers a lower-risk entry with a 1.4% buffer to current price. For next Friday’s chain, the $322.5 call (OI: 1,034) is attractively priced if JPM consolidates near $314.30 (intraday low).Stock Positioning: Enter long near $314.30 (intraday low) with a stop-loss below $301.51 (30D support). Target zones include $317.33 (intraday high), $319.53 (Bollinger upper band), and $325 (call-heavy strike). For risk-averse traders, a bullish iron condor could be structured between $300 (put-heavy) and $325 (call-heavy) strikes.Volatility on the Horizon

The convergence of technical strength, options positioning, and strategic news creates a high-conviction setup for JPM. With the stock above all major moving averages and institutional call OI concentrated near $325, the path of least resistance is clearly to the upside. Traders should monitor the Q3 2025 earnings call and investor day event for catalysts that could accelerate the move toward $325. However, a break below $301.51 would invalidate the bullish case, warranting a reassessment of risk-reward dynamics.