/biz/ - Business & Finance

Pay attention /smg/
This is extremely important information I am sharing with you, that we should discuss in depth all together - possibly the most important piece of information you will receive today
This is the new collar that JPM put on Friday
>Buy 3,600p - 41,600 contracts @ $87.83 3/31
>Sell 3,040p - 41,600 contracts @ $12.45 3/31
>Sell 4,030c - 41,600 contracts @ $79.77 3/31
there is a very hard ceiling on the market rally
SPX cannot pass 4030 by 3/31 or JP Morgan would lose a fuck ton of money
I ask you, what is more likely
JP Morgan loses a fuck ton of money
or SPX doesn't rally past 4030
I'll give you a hint..
How does JPM make money on this trade?
>SPX doesn’t cross 4030
>SPX closes the quarter 3/31 below 3600 but above 3040
>every tick below 3600 this quarter = JPM long puts profiting
>their 4030 calls they sold expire worthless
>their 3600 puts they bought expire ITM
>as long as we don’t fall below 3040
What happens next /smg/???
You tell me
>SPX currently: 3810