JPMorgan Chase (JPM) Options Signal Bullish Rebound Potential: Focus on $320 Calls and Key Support Levels

• JPM is down 4.6% today, trading at $300.64 after a volatile session with an intraday high of $318.80
• Options open interest shows heavy call buying at $320 and $340 strikes for next Friday (Dec 19), while puts dominate below $295
• Technicals suggest a short-term bullish bias with RSI at 68.6 and MACD crossing above its signal line

The market is pricing in a potential rebound—but with a tight grip on downside risks. JPM’s options activity and technicals paint a picture of cautious optimism: traders are loading up on calls above the current price while bracing for a possible breakdown below key support. Let’s break down what this means for your strategy.Bullish Calls Stack Up Against Cautious Puts

Looking at next Friday’s options chain, the JPM20251219C320 and JPM20251219C340 calls dominate with 5,659 and 6,482 open interests respectively. This suggests significant positioning for a rebound above $320—a level just below the 30-day Bollinger Upper Band ($322.59). Meanwhile, puts at $295 (JPM20251219P295) and $265 (JPM20251219P265) show bearish hedges below the 30-day moving average ($308.53).

The put/call ratio for open interest (1.02) is nearly balanced, but the skew toward higher-strike calls implies a bias for a short-term rally. However, the heavy put activity below $300 signals that sellers are bracing for a breakdown. If JPM closes below its 200-day Bollinger Lower Band ($293.65), this could trigger a cascade of stop-loss orders.

No Major News, But Options Tell a Story

With no recent headlines to anchor sentiment, the options market is essentially trading on technical conviction. The lack of block trades (large institutional orders) means this setup is driven by retail and institutional options players rather than fundamental catalysts. This could work in your favor if the technical levels hold—but also means the move lacks a "news-driven" tailwind to sustain momentum.

Actionable Trade Ideas for JPM

For options traders, consider buying the JPM20251219C320 calls if JPM rebounds above its middle Bollinger Band ($308.12). The $320 strike offers leverage if the stock closes near its 30-day MA. For downside protection, the JPM20251219P295 puts could act as insurance if the price breaks below $300. Both expirations this Friday and next offer liquidity, but next Friday’s contracts give more time for a rebound.

Stock traders should watch two levels:

• Entry near $308 if JPM holds above its 30-day MA (current at $308.53). Target $320–$325 if the 30-day MA acts as support.
• Stop-loss below $293.65 (lower Bollinger Band) to avoid a deeper correction. A breakdown here could send the stock toward the 200D support zone ($289.57–$291.78).

Volatility on the Horizon

JPM’s options market is a battleground between bulls eyeing a rebound and bears bracing for a breakdown. The heavy call open interest at $320–$360 suggests a "retest rally" scenario if the stock bounces off its 30-day MA. But don’t ignore the puts below $300—this stock isn’t out of danger. Your best bet? Position for a directional move while hedging with options if the price stays within the $293.65–$322.59 range. Either way, December is shaping up to be a pivotal month for JPM’s volatility story.