JPM has pulled back about 9% from recent highs but is still slightly higher on the year and is bouncing off the 326 support area with improving momentum; the rate-related fundamental picture is a mixed bag, and into tomorrow's earnings only a modest few-point drift higher is expected, not a large trend move.

What are you seeing as far as just overall expectations and and the recent trends we've seen for JPMorgan that frankly has pulled back. I believe I misspoke, 9% from the recent highs here.

So, has pulled back, but still does remain slightly higher on the year.

Hey, Jenny. You know, this is one of those bellwethers. I mean, this is kicking off the earning season. The financials have been largely in focus, obviously because of yields, but that's been kind of the give-and-take that JPMorgan Chase has been feeling because as yields have come down just a little bit, they're starting to see a little bit of a rally, and it's moving in almost oppositional movement to those 10-year yields, for instance.

But you see a little bit of a bounce here on this chart. This is a one-year daily chart, even though the 50-period moving average is rolling over a bit, getting a bit of a bounce off of that 326 support area that we've seen tested previously.

In fact, tested right around the last earnings and the two earnings previous to that.

The RSI kind of coming off of that lower reversal zone, starting to turn back up a little bit, so getting a little bit of a momentum gain. What I thought was really interesting, Jenny, is the fact that implied volatility for this name has already started to roll over a little bit.

That's typically a trend for this stock ahead of earnings announcements because it is kind of that early announcement in the cycle, but that volatility tends to bleed off a little bit faster before the announcement comes out, not just waiting till that announcement and then crashing, Jenny.

Sure. You from a fundamental standpoint, I mean, I think, you know, that's going to be part of the statement that comes out in the earnings announcement with their forward guidance is what their assessment is of that yield situation, what those interest rates are going to do not only to their assets under management, but to their lending business and to their credit card business and auto loan business and all of those other things that either generate or uh take away those interest payments.

And so, I think it's going to be mixed bag just given where those rates are and what the forward outlook is.

That being said, from a directional standpoint, I mean, I think it has a little bit of a drift higher here just given that bit of a bounce and the possibility of moving, you know, maybe a few points to the upside.

I mean, this is not a huge mover on earnings and it never really has been at least over the course of the last year has not had significant moves up or down on those earnings announcements.

Yeah, it's had big range days, but it hasn't really resulted in significant trend changes like gaps to the upside for instance, Jenny.

Yeah, I will say that when you look at a lot of these charts, especially JPM, it's not exactly a gappy or of a hugely volatile chart, which is I mean, to some to some benefit at least.

But so as far as now ways to trade JPM for example purposes, this is obviously the bell bellwether, the big one. Jamie Dimon very much vocal on the state of the the broader economy.

And so, what do you watch for when you look at ways to trade this company into earnings?

Well, given the fact that there's you know, not a huge expectation for movement and volatility relatively low, already starting to go down. I was looking at a potential calendar spread taking advantage of a little bit of elevated implied volatility here in this week that the current week of ex of earnings, the announcement and you know, I've got a short expectation here for that movement.

And looking for a little bit of an upward drift from where it's coming off of that support around the 220 326 level up to about 335, which has been a resistance before. Now, we've got a resistance overhead around that 343 level, but this calendar spread at the 335 call strike expects potentially a drift slightly higher if the price of the stock moves a little bit, but it also takes advantage of the fact that if we get kind of a drift towards that level and into this earnings announcement tomorrow, we end up getting anywhere near that 335 strike.

This is a relatively low cost to enter trade, a buck 45 net debit, and looking potentially here in this case to get out with about 50% of that net debit as a gain in the trade.

So, about 72 cents, about 217 overall to exit the trade, not necessarily looking to taking this to max theoretical gain, Jenny.