JPM

hardcore_softie

Last week I think most banks that reported missed earnings and dropped. JPM went down 6.5%

Independent-Novel840

JPM, CITI, Goldman - OOPS they did it again- bastards

theta_007

The Fed has two main levers for monetary policy: OMO and Rates. Open Market Operations means buying/selling securities. This can be UST, MBS, and during the pandemic Corporate Debt. When the Fed does OMO, colloquially known as QE, they buy UST/MBS from primary dealers and credit their bank reserves. There's two types of RESERVES- reserves mandated by regulations (ex 10% of total deposits must be held with the Fed), and excess reserves. As of March 2020, the reserve requirement for all deposit institutions was set to 0% of eligible deposits. The Board previously set a zero reserve requirement for banks with eligible deposits up to $16 million, 3% for banks up to $122.3 million, and 10% thereafter. Having MONEY held in a reserve account and actually being used...are two different things. Once the money is LENT, then it springs into existence and the money supply expands. Don't believe me? JPM balance sheet went from 2.7T to 3.7T in 1 year. Previously, it had taken them 10 years to increase their balance sheet 1T. Since there was NO incentive to keep the money in a reserve account (think 0% incentive), this money begins to get lent out. What do companies like Apple do? They borrow at super low rates and buyback their own stock. What do individuals do? They borrow at super low rates and buy real estate. Hence, a CREDIT EXPANSION. What happens when you expand credit this quickly...well prices rise, and the dollar loses purchasing power. What happens if you don't stop this reckless behavior? The money supply can expand way too fast, and maybe we get Lebanon style hyperinflation? To deter this expansion of the money supply, the Fed can stop crediting bank reserves and/or raise rates. Raising rates is a weapon to blunt inflation. Why? It punishes the weakest companies and borrowers with higher rates and DETERS reckless borrowing. A mortgage rate of 2.75% v 3.5% means the borrower will get priced out of homes they earlier could qualify for. As rates rise, we will see who committed fraud, over levered their balance sheet, and engaged in reckless behavior. The strongest companies with cash flows TODAY, will be fine.

hardcore_softie

JPM dropped like 6.5% on earnings last week

The_Sanch1128

I have nothing against C, but since I already own some JPM, I just put in an order to buy some more on a small drop. I may check on C as a possible buy, though.

The_Sanch1128

Sorry, but while I'll invest in companies that aren't ethically 100% upright, I have major issues with outright sleaze. I own JPM, I've owned C, I've owned BAC options, but I draw the line at WFC. YMMV. And I listen to Cramer occasionally for entertainment. Once in a while I do my DD on a stock he recommends, but mostly it's in one ear and out the other.

oyveyanyday

I'm expecting a slight up day since some stocks dropped hard on Friday that the market usually loves (HD and JPM). I don't see much overall momentum though

ilai_reddead

Well IB and high finance jobs are very diffrent from a financial advisor, you are going to be disadvantaged because those high finance jobs are built around networking and relationships, if you work at JPM and want to jump into private equity or hedge funds or even moving up in the company to higher level positions without networking it's going to be very hard to do so and you are going to be disadvantaged relative to your in person coworkers.

Cool_Ad_5101

Tim Cook - apple Moynihan - BAC Dimon - JPM Pourbaiux - CVE Benioff - CRM

Ok_Opportunity2693

I’ve heard horror stories from JPM about tech workers who work in a different building than every other member of their team, and yet still they are expected to go to the office every day just to take their zoom calls from the office. I work at another BB where it’s not that extreme, but it’s similar. 90% of my job is silently coding. There’s no need to be in the office for that.

Alvin-Lee1954

It’s a slippery slope - stay off the expert run until you take a few green and blue ones first . Last week everyone dumped a heap on JPM. The new mantra value and cyclical over growth and tech . They got killed on guidance , same with Goldman this week. These are rough waters and 2022 will remain choppy with high IV throughout the year - think volatility when you hit options

MrMage

Wasn’t it the JPM guy?

asandidge27

Op should sell the book and buy puts on JPM knowing they will never get the money back

ilai_reddead

Jaime reduced JPMs exposure to mortages and structured products in 2006, when he became CEO in 2004 JPM was the bottom of the barrel of banks and it underperformed from 2004-2007 because Dimon opted to avoid much of the risk taking that rivals decided to participate in, because of that it's now at the top and the largest bank in the world in a very competitive space, I don't see how anyone even if you hate Dimon as a person and his ethics it is undeniable he is a great CEO in an industry plagued by mismanagement and terrible CEOs.

cdawwgg43

I don't like Roku. I am not sure what their long term is. I don't know how how heavy their revenue is. They make money doing ads, audience analysis tools, sodtware/hardware licensing, streaming subs, and selling audience behavior metrics (everyone does this). They are doing good in the smart TV / technology integration market but they pay for it too. I'd personally cut roku and dollar cost down NVDA. Nvidia owns their technology and the value of what they do is much greater than Roku. They're the big dog in AI and datacenter HPC. Crypro miner / retail is far less of their income than their datacenter HPC DPU etc. Add in the fact that Huawei hardware disqualifies you from a large number of govt contracts, Nvidia bought Mellanox and it seems that companies are starting to become more open to SDN and network automation. You can get 100G switches for a fraction of what cisco or Juniper costs. The only alternative really is Nokia or Quanta/Quantamesh/QCT (also a good buy) since they OEM for the rest of the market too. I like Square but i'd rather have a few payment companies. Stripe is killing square right now and has a much more reliable stream focusing on businesses vs consumer transaction processing. I like the idea of owning Visa Mastercard Chase/JPM and AMEX, and some other banks that are on the banking side side. Paypal is a good company but there are a large number of payment processors process through visa to card partners like chase/JPM, CIBC, PNC and tons of of others. Visa, mastercard, amex, and a large number of other providers sell access to their gateways for application back end transaction processing. I also like banks that hold the credit cards for big box stores. CIBC for instance got the exclusive mastercard contract for all of Costco Canada. They have banks in the us and the Caribbean and are scratching and clawing for more contracts. I'm legging out of most of my portfolio. Things don't smell good. I'm kind of sounding bearish but I want to hold maybe 20% in cash so when something does happen I can really lower my DCA.

ilai_reddead

Well you clearly haven't looked into the 2008 financial crisis very deeply, if only a portion of the banks got bailed out they would be Percivead as weak and the market would punish them for it and that would just cause more probelmes so it was important even the banks who didn't need it like JPM and Wells took the bailout money, the banks that didn't need it didn't want it, Wells Fargo was very much against taking the bailout money as well as JPM.

no10envelope

Jamie Dixon at JPM. This guy is a grade-A piece of crap human, just the kind of psychopathic sleaze bag you want running your bank.

bigtimejohnny

Can anyone do a quick ELI5 on why the big JPM drop?

ilai_reddead

I wont try and change your opinion on wall street or Jaime Dimon but JPM didn't need a bailout in 2008 and that's not opinion. They had to take it to cover for the other banks that actually needed the bailout, they also paid it back in full in 2009 just one year after, so no JPM didn't need bailout money and to say otherwise just isn't true.

ilai_reddead

I'd say Jaime Dimon. When he took over at JPM it was the black sheep of the banking industry and he managed to bring JPM into our everyday lives with the Chase merger, and he also manged to steer JPM though the financial crisis very well with little to no damage.

geoguurrr

Mate. I made the post 9 days ago. I will show you screenshots of my gains if you want. I didn’t hold but I might buying more on Monday. Also I didn’t hold JPM ever and I never had any significant stake in BAC however i sold BAC like Monday. Keep crying about it pussy. Sorry you missed out.

Grits_N_Gravy_23

JPM -7% and BAC -5% You fuckin got CREAMED!! Like I said, dumbass! You know you held, pussy. You cryin right now. Otherwise you’re a fuckin punk ass bitch tellin people to buy while you’re sellin. Fuckin owned!

BullishBearishBiz

How’d that go for JPM?

TheProfessor99-

JPM. It’s 25% of my trading portfolio rn

snomStick

yeah i thought because of that JPM would moon but i guess not haha

D_Glatt69

JPM is a safe bet for the long term, but best of luck to you I think if you’re just patient you’ll at the very least not take the L

tired_trotter

Last time JPM bought a lot of Russian aluminum (RUAL) so it might be the same play if anything happened which I doubt.

KKrum41302

US earnings reports always happen in either premarket or after hours trading. In your case, JPM reported their earnings a few hours before regular open, so when they reported the earnings, the stock price tanked during premarket trading and that’s how your calls got fucked before regular trading began.

ComprehensiveUsual13

With oil price staying at or above current levels I can not think of a bigger winner than the oil and gas companies. The materials and mining will also be sectors not lagging that far behind. I would have said financials but really don’t think 2-3 increases in interest rates are going to be enough of a catalyst. We have already seen $JPM and big banks seeing an increase in the expenses with the inflation

WallabyUpstairs1496

I know everyone already invests in JPM, but JPM. They're investing a lot of money into improving their tech infrastructure. I don't know if that'll result in growth but they're doing everything they can to make sure they are on top and stay on top.

Cuchulain72

I was an amc holder from 9 to 63, bought back at 37 sold the day Popcorn started his "estate planning". When really the fed put an end to this shit buy having all the insiders sell all thier shares to JPM who was holding collateral for Apex and others. No way the government would let a bunch of the same people staging a hunger strike over BBB win by letting the squeeze happen. Not a shill, just can see when Popcorn is using people. Hey if you all pay me 9.99 a month I will give you a free nft saying that you pay me 9.99 a month.

SlothInvesting1996

He was pumping JPM all year and looking at the earning call... I been holding WFC for two years. I should consider sell after this devastating news

EuphoricWizard

BAC tanked on JPM earnings. Wonder what it’s gonna do on its own earnings next

Mooninite3

NVDA, AMD, JPM let's see what next week brings

Majin_Senku

Chase Sapphire Reserve is the best travel credit card. Calls on $JPM

Unfamous_Trader

praying for a dead cat bounce on JPM Tuesday 🙏

Margin_Call_3959

There is a fed induced bubble. Can you find something smaller that’s cheaper and would satisfy your family needs? JPM thinks the fed will have to raise 7 times this year?

nycbay

JPM should acquire HOOD and make sure American next generation is tied to them forever. HOOD is now too cheap not to be acquired by someone very soon. With JPM name behind the hood, this could change HOOD trajectory for good.

Jeff__Skilling

All I read here is "I'm both too stupid and too lazy to link any support to my claims of coordinated conspiracy among GS/MS/JPM/C/BAML/BarCap/CS/et al. Mostly because I came to this conclusion by browsing ~~online boiler rooms~~ *get-rich-quick subreddits*, took everything I read on there at face value, and now I'm too immature to admit that I was gullible enough to believe a bunch of *veeeerrry easy-to-disprove* misinformation" >The list is way too long and far too complicated for most to comprehend This right here is the real smoking gun that you yourself don't really understand the subject matter at hand. >Of COURSE there's evidence......you're just too stupid to understand it, so I'm not going to waste my time explaining it to you See how fucking ridiculous that sounds?☝️

UpToMyKnees1004

I've been looking into oil companies for 2022, but there seems to be disagreement about where oil is going this year. JPM is predicting oil potentially hitting $125/b in 2022 and $150/b in 2023. It does seem like oil companies are going to continue to struggle to meet demand, and I've seen that some companies are scaling back investing in production expansion in favor of dividends. But EIA is predicting lowered prices, OPEC+ is planning to increase production, and it seems China and the US are trying to combat high gas prices by releasing oil from their reserves. Thoughts?

girthygirthmonster

Would say banks but JPM imploded on Friday. 5k evaporated into nothing over night

ImhereforyourDD

There was a crash in 28’, JPM and cronies came in and pumped that bitch more. Then when the money/margin ran out, it fell. Retail investors are running out of disposable income. That would be my theory to the OP statment

phasegrowth

Randomly found this comment through a search. CANO's been getting slaughtered. You still confident in CANO? Hoping for Q4 ER to turn the tide. Growth and fundamentals haven't changed and the JPM presentation this week seemed even more bullish. ReFi'd the loan as well yesterday. Hoping the VBC death touch is over soon..

mrmrmrj

When the NASDAQ started sliding in 2000, CNBC had all the growth guys on defending their stocks as things crashed. By this time, all the value guys who had been warning everyone for two years were being ignored. When Bear Stearns stocks was collapsing in 2007, all the professionals kept saying "Bear is fine! It's Bear after all." Then Bear sold to JPM for $4 a share. There was still denial for almost a year after that and then Lehman had a conference call in September 2008 and the shit hit the fan.

Dmoan

MS for ER it’s been sold off prematurely due to bad #s from JPM. Even if there is sell off @ ER next week, stock will pop back up to 110 in following weeks IMO.

ExpensiveBookkeeper3

Didn't JPM only beat EPS because of being able to release $1.8B in reserves?

JackCrainium

WFC was up, JPM fell far more than anticipated......

CityOfBelgrade

I hope BofA dips hard like JPM. Perfect time to stock up on bank calls.

Didntlikedefaultname

This is way overly simplistic. Let’s take JPM for example. Revenue is down but EPS beat estimates. Let’s not go around saying banks aren’t profitable and got crushed. The stock prices got crushed but I didn’t see any doom and gloom in the earnings. It’s been a wild couple years. Trading revenues were sky high and came down. Loans were a bit lower as well. Costs are also up. JPM is in no way done growing

ProfessorPurrrrfect

Value will be crushed if inflation drops prior to the Fed raising rates, since 4 hikes are already priced in. Personally I think they will only raise rates twice. Banks earnings sucked this week, causing some of the investors who have fled tech in favor of financials, energy and consumer staples to think twice about their strategy. JPM made the exact same amount of money they made 3 years ago, there is no growth in banks. So maybe the P/Es of some of the growth companies that are growing don’t really matter that much after all

phasegrowth

Think the market still has some room to go down. I'd nibble if anything. Their conference call at JPM this week sounded pretty bullish for Q4 earnings however.

bernie638

>Why did JPM and Citi not do well but WFC went up. WFC seems to have spent even more money on their credit card advertising than JPM (I see WFC ads everywhere). ​ JPM and Citi are mainly investment banks. WFC is a consumer bank. I haven't read the transcripts yet, but just based on the above it's good news for Bank of America (another consumer bank). ​ It's not a sure thing, WFC got a boost because they've been talking about cost cutting and this quarter it finally showed up in the numbers (expense ratio). They are executing their plan. BAC didn't have that problem to begin with so might not show the same strength as WFC. Yesterday WFC had been my second largest position, after today, WFC grew to be my largest.

reddituserhdcnko

Yea he’s jealous of a bank with 1/4 of JPM’s market cap.

Unfamous_Trader

So I bought and held the JPM dip and I regret not selling. How can I get a refund?

SoulReaper850

I swear JPM moved hundreds of millions of dollars just to screw me out of my $100 call. It has happened before. I'm the center of the universe and everyone is out to get me! /swallows medication Calls on JPM - Checkmate bitches

kriptonicx

I don't get it either but apparently because interest rates are going up 0.5 - 1% you should sell out of small-mid cap growth stocks trading at their lowest valuations in years to buy "value" like AAPL and JPM which are trading at their highest valuations ever. My guess is that as usual Reddit will be wrong and that large caps are going to significantly underperform in the years to come while small-mid caps and EM will play catch up, but who knows. At the end of the day all you can do is put money where you feel the value is. Over the last few years AAPL has gone from a 15 PE stock to a 30 PE stock, I highly doubt it's going to see multiple expansion like that again, in fact multiple compression if anything seems more likely at this point in time. I wouldn't bet on a correction though, multiple compression doesn't require a drop in stock price, but can also be achieved via higher earnings and buy backs. If AAPL trades flat for a few years it's multiple will retreat back closer to historic levels, in my opinion this is more likely. What I will say is that large-cap stocks have been buying back a lot of stock in recent years and I suspect the market is pricing this in with higher valuations to some extent. There is also interest rates which also helps explain some of these moves, but they're not going any lower and as the FED tightens multiples will be squeezed.

Die_Gelbesack

I have a few hundred shares and rode it up and down. I'm still in it. It broke below the 178 support level from 2020, I think the JPM numbers from today also were a drag too, since bank stocks were supposed to be "safe". the market is selling/ shorting high PE stocks, especially on days like today and there was alot of put OI in the 175-180 range and that's where it went. That's basically how the whole market was today. The next ER will be critical especially the guidance.

rusbus720

Jaime boy wants the fed to pay JPM more for the assets it holds

hardcore_softie

JPM dropped 6%, C dropped just a little over 1%. Both made their biggest moves premarket, but C went up throughout the day while JPM stayed down. As for why JPM dropped more, that's playing earnings for ya, kind of a crapshoot a lot of the time. The market is not rational, especially short term. Nice job with 900% on JPM, that turned out to be one of the juicier put opportunities today, but only if you bought yesterday like you did.

SoulReaper850

Option prices fluxuate like stocks. The contract premium increases as more volume of that contract price and expiry enters the market. Chances are that there was a higher volume of traders buying contracts in JPM than with Citi, so your contract's intrinsic value (the value you see when it is OTM) was higher in one vs the other.

Spiritual_Extreme_81

They didn’t price in the JPM drop probably

4mc4mc

JPM vs Citi today Yesterday I bought some puts for jpm and made about 900% gain, but I have a question. Why is it that this stock like Citi bank’s stock both moved roughly around the same percent at least as of 9:30am today, yet the citibank puts are disappointing compared to this one. I don’t fully understand the greeks and have some knowledge on IV. I usually just trade company shares don’t have too much experience with options. Can someone explain why JPM was a way better stock to trade options vs Citibank today? They both had similar disappointing revenue statements. I bought JPM 160p for 0.35, yet at about the same percent out of the money options yesterday were similarly priced for citi bank. JPM performed great and citi puts did poorly yet both companies posted disappointing revenues for Q4. Thanks

johnmayer74

Bought JPM 0218 165C. Looking for a bounce off the 200 EMA.

4mc4mc

JPM vs Citi bank today Yesterday I bought some puts for jpm and made about 900% gain, but I have a question. Why is it that this stock like Citi bank’s stock both moved roughly around the same percent at least as of 9:30am today, yet the citibank puts are disappointing compared to this one. I don’t fully understand the greeks and have some knowledge on IV. I usually just trade company shares don’t have too much experience with options. Can someone explain why JPM was a way better stock to trade options vs Citibank today? They both had similar disappointing revenue statements. I bought JPM 160p for 0.35, yet at about the same percent out of the money options yesterday were similarly priced for citi bank. JPM performed great and citi puts did poorly yet both companies posted disappointing revenues for Q4. Thanks

cgnuoy213

The best illustration I could give u is: Let’s say JPM is a 20 unit apartment. And currently they are renting out 5 units and everything else is empty. The analyst complains that JPM is going to spend $10k more this year. Jamie replies, “chill. I have dry powder. I’ll take more risk and rent out 2 more units (take more risk) if the spending goes out of hand”. Hence the term, “deploy the balance sheet”

cgnuoy213

Not exactly. Jamie is not saying that he’ll be “spending even more later”. He’s stating that he could offset the spending by taking more risk (Eg do more loans or allow traders to take more risk) to generate more returns. The analyst was complaining JPM is planning to increase spending without any offsetting increase on return of capital. And Jamie responded by saying, we have dry powder and could take more risk. Taking risk does not mean spending more money.

r2002

Ah thank you! So the analyst is complaining about JPM spending a lot of money and Dimon's response is that "Oh we're being conservative but we might be spending even more later"? Here's the full context in case anyone is curious: **Mike Mayo (Analyst)** > Well, that’s what I’m trying to figure out here with -- it’s a little frustrating this call because the guidance you’ve given has given all the bad news without any targets. I mean, you’re saying we have to wait two years for the 17% ROTCE, despite the booming economy. You’re guiding for the second year in a row of negative operating leverage. I get it. That’s not how you run the company. But $15 billion of investments, that’s up one-half over last three years. And that $15 billion is enough to capitalize the 11th largest U.S. bank. So, you gave us that, but you didn’t tell us what to expect from all those investments in terms of what specific market share gains are you targeting, what specific revenues do you expect, when do you expect that? Can you put some more meat on the bone here because this is -- at $5 billion of investment spend, look, it worked. You gained share. At $10 billion of investment spend, it worked. You gained share. But now you’re going to $15 billion. It might not always work so well. So, can you, again, put more meat on the bones? The stock is down 5%. The feedback so far is like you’re spending the rate hikes for investments over the next 10 years. That’s great. You’re in there for the long term, but a lot of the investors aren’t planning to invest for a 10-year horizon. **Jamie Dimon** > Michael, I feel your pain and frustration. It is very possible in 2023, we’ll have a 17% ROTCE. It depends on how we deploy our capital. It depends on fixed income markets. It depends on a bunch of stuff like that. But every -- but the 400 branches that we’re building, those things will get to contribution profitability just like we expect. The thousand bankers we’re adding in private banking, and Chase Wealth Management, we’re pretty sure we’ll get to breakeven but just we expect that takes a couple of years. > And so yes, we can’t -- we’re not going to tell you all of those things. And we already mentioned some of the tech stuff is just kind of we have to do it, and there’s a little bit of bubble expense in that. There’s even a little bit of bubble expense on new headquarters. And so, we’re pretty comfortable we’re doing the right things. And we’re being a little conservative. Like Jeremy was talking about the card stuff, the return, I told our folks that we’re going to -- our card growth this year, but they were skeptical. The American consumer is very strong. Our products and services are very good. Chase, we call now self-directed investing has $55 billion. I think Robinhood has, I think, 80, the last time I saw, something like that. We’re not seeing your -- bragging about our product because I would say it’s not good enough yet. But it’s got $55 billion without us doing virtually anything and or no marketing and no real stuff like that. > So, there’s a lot of stuff coming. The competition, we have to face. Some of these acquisitions we made will contribute to profit, maybe not exactly in 2022. But -- and I mentioned the deployment of the balance sheet. We’re pretty conservative in deploying the balance sheet. That may not always be true.

mulemoment

Would’ve gotten you about an extra $4 for MSFT and $12 for JPM over the 10 years, wouldn’t significantly change the ROI

phillysteaks718

Lol he won’t be alive when that will happen. JPM has a big moat that they got a couple of years before they really be threaten.

ReasonableEggplant71

Made back my yearly losses with $270 worth of puts on one trade of JPM 🦍

hardcore_softie

To be fair, JPM tanked today, but most of the financial sector was green, more so than tech today even. The financial sector has been helping to prop up the indexes lately too. I'm not a tech bear, in fact I made most of my money last year from big cap tech, but you can't base market trends from a single day, especially earnings. Lots of big tech have dropped on earnings too, just to quickly recover.

CUTON1C

JPM

Shapen360

My friend called me this afternoon and went "Is the Fed going to raise rates by the end of the month? I want to buy JPM calls." If you paid any attention to monetary policy at all you'd know that the Fed isn't raising rates until at least March.

SpaceMurse

Naw but picked up some JPM today so that’s pretty close

mulemoment

If you picked the right ones maybe. From just eyeballing it, MSFT, you'd be flat or negative. JPM you were negative, maybe flat if you DCA-ed the whole time AAPL you were positive on AMZN you were positive on, but you were flat to negative for 7 years first

redcedar53

Isn’t it funny how tech bears were shouting INFLATION! INTEREST RATE! and instead went long on financials like JPM cuz “undervalued” and because “rising interest rate will help them”, and then they tanked 6% today. Karma’s a bitch.

reallynotrhino

GME puts last week, JPM puts yesterday for earnings call

reallynotrhino

GME at first, then JPM around earnings, now back to GME

reallynotrhino

GME puts into JPM puts

reallynotrhino

GME puts into JPM puts

reallynotrhino

For those asking/wondering, I did GME $100 puts last week to expire 1/21, then carried that and placed it all on JPM $165 and $160 puts expiring 1/28 (placed on Thursday 1/13)

creamyturtle

went all cash last week and put 3% of my portfolio into GS and JPM. what could be safer right? they have 10:1 PE god damnit. everyone's trading out of tech and into financials right? right?? fml

throwawaymyalias

Seems a good bet; and especially so following today's JPM news.

WickedSensitiveCrew

Sounds like he is jealous WFC had better earnings. And his trolling didnt even work JPM finished down 6% today.

Unfamous_Trader

No matter how dumb y’all feel. Atleast y’all didn’t buy the JPM dip like I did

Unfamous_Trader

Buying the JPM dip was a bad idea 😔