How We Made $15,259 from JPM?

In partnership with

JP Morgan (JPM) just announced their earnings and below are the details.

• Managed net revenue $42.65B > est. $41.38B

• Net interest income $23.53B > est. $22.80B

• GAAP EPS $3.11 > est. $2.94

• Total deposits $2.43T > est. $2.40T

On the news, the stock jumped 4.4% and we decided to close off the trade with a profit of $15,259. Below I will run through the whole trade and how we did it in my investor community - Stock Market Genius

It was first highlighted in Stock Market Genius on 17 Sep. With Fed cutting rates, banks are likely to benefit from wider spreads and increased lending activities. JPM is a clear choice for me as it was the best in class in terms of business and cost management.

Back then the stock price was at a nice EMA support and the valuation is reasonable.

So I did a synthetic trade on it which involves the following:

Sell Put at 205 strike and Buy Call at 210 strike, expiring Dec 20 2024

(If you are not familiar with Synthetic, you can join Stock Market Genius (SMG). It is my favourite strategy and I explained in great details in the online course)

The key to the success of this strategy is matching the strategy to your investment plan.

In a synthetic, the max downside is you will have to buy shares of JPM at the strike price of the sell put ($205). Something that I was more than prepared to do. Rather, I found that price quite undervalued!

However, the market is always testing investors’ mindset. Two weeks after we enter the trade, the share price fell back down to our original price (point 1) and the trade was in a loss (point 2) 😲 

Investors were panicking, and some were starting to doubt their investment. However, I saw an opportunity! When a great business sells at a great price, you should feel something. Not fear but excitement!

And in the Stock Market Genius community, I shared that added more positions in JPM.

Yesterday, JPM had a smashing earnings and the rest is history. We closed the position last night with over $15k profits.

What’s Next?

Continue to look for the next opportunity! Especially now is earnings season, which is also hunting seasons for us at SMG!

The important thing is Everyone is different! Some are short term traders, while some are long term investors. So we have something for everyone in SMG.

I am doing weekly updates to share both long term investments and short term trades. You will also find step by step courses on options in it. So if you are new, come on in!

If you are interested to be part of this community and profit together, join us! The current price is $499 per year, and because of the increased resources (I hired an analyst), we will be increasing price by end of this year. (Those who are already members, don’t worry, your membership price will always remain the same! Thats the benefit of joining us early!)

Alright! This should get you ready for the markets this week!

May Your Profits Grow!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.

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