JPMorgan Chase (JPM) Options Signal Bullish Momentum: Focus on $335 Calls and $315 Puts as 2026 Looms

• JPM’s price action shows a 0.06% intraday gain, trading just above its 12-month high of $323.42.
• Options data reveals a call/put open interest ratio of 0.92 this Friday, with heavy call buying at $335 and put interest at $315.
• Technicals point to a short-term bullish trend, with RSI near overbought (73.64) and MACD surging above its signal line.
• Recent news highlights JPM’s 12% net income jump and a high-profile legal dispute that could reshape corporate liability norms.

The big picture? JPM’s options market and technicals are whispering upside potential, but with a cautious nod to near-term volatility. Let’s break it down.Bullish Calls Stack Up, Puts Hedge the Edge

Options traders are piling into out-of-the-money calls, with the $335 strike (JPM20260102C335) leading the pack at 2,467 open contracts this Friday. That’s not just noise—it’s a vote of confidence. The $330 and $327.5 calls trail closely, suggesting a cluster of buyers eyeing a push above $325. But don’t ignore the puts: $315 (JPM20260102P315) and $312.5 puts dominate, hinting at hedging activity ahead of the year’s end.

The put/call ratio for open interest (1.09) tilts slightly bearish at first glance, but context matters. With JPM already near its upper Bollinger Band ($331.39), the puts may reflect caution rather than bearish conviction. Still, the lack of block trades (no large institutional bets reported) means retail and smaller players are driving this setup.

News Flow: Earnings Beat vs. Legal Drama

JPM’s 12% net income surge and its role in the Javice legal case create a mixed narrative. The earnings beat should fuel bullish momentum, especially with insiders and analysts praising its dividend strategy and market cap resilience ($880B). But the $74M legal billing story adds a wildcard—could this spark regulatory scrutiny or shift investor sentiment?

Retail traders might be underestimating how news like this amplifies volatility. Think of it like a storm brewing: the puts at $315 act as an umbrella, while the calls at $335 are the life jackets for those betting on a post-storm rally.

Trade Ideas: Calls for Gains, Puts for Protection

For options:

• Aggressive Play: Buy JPM20260109C335 (next Friday’s $335 call). With 1,228 open contracts and JPM’s RSI near overbought, a breakout above $325 could trigger a rapid move toward this strike.
• Hedge Play: Buy JPM20260109P315 to cap downside risk. If JPM dips toward its 200D support ($298.26), these puts could gain value.

For stock:

• Entry: Consider buying JPM near $322.80 (today’s intraday low) if it holds above its 30D MA ($312.57).
• Target: Aim for $331.39 (upper Bollinger Band) if the 100D MA ($306.54) continues to act as a floor.
• Stop: Exit if JPM falls below $317.35 (middle Bollinger Band), which could signal a breakdown in momentum.

Volatility on the Horizon

JPM’s 2026 story hinges on two forces: its ability to capitalize on M&A-driven earnings and the fallout from its legal battles. The options market is already pricing in a bullish bias, but don’t sleep on the puts—they’re a reminder that even bulls need a net.

Keep an eye on the 1.08 put/call ratio and how it shifts in the next 48 hours. If calls at $335 and $340 (JPM20260109C340) start to dominate, it could signal a short squeeze or a breakout. But if puts at $300 (JPM20260109P300) gain traction, brace for a test of the 200D support.

Bottom line: JPM is a stock with its foot on the gas, but the road ahead has potholes. Trade with the trend, but keep your seatbelt—and maybe a parachute.