If you thought your Cinco De Mayo was wild take a look at the options for J.P. Morgan Chase this week. JPM came out with some very bad news after the close on Thursday, but it was great news for JPM put holders. They were doing the Salsa all the way to the bank today.
JPM's 9% decline was a nice return for those short the stock, but for those who played JPM downside via PUTs....paydirt. Some unbelievable gains for those positioned for a big decline.
The JPM options that expired this week:
$38 puts from $.02 to $1.37 or $200 into $13,700
$39 puts from $.02 to $2.17 or $200 into $21,700
$40 puts from $.09 to $3.20 or $90 into $3,200
Even a $20 buy of the $38 puts would have turned into $1,370. That will pay for some great dance lessons.