JPMorgan Chase Stock Cools Off Ahead of Earnings

JPMorgan & Chase Co (NYSE:JPM) will be one of the first big names to kick off earnings season next week, announcing its third-quarter earnings report on Tuesday, October 14. Analysts expect profits of $4.83 per share on revenue of $44.66 billion, an increase of 10.5% and 4.7%, respectively, from the same quarter last year. 

The blue-chip bank stock has finished higher after three of its last four quarterly reports, but shed 0.7% back in July despite an earnings beat. Over the past two years, the stock has averaged a post-earnings move of 2.6%, regardless of direction. This time around, the options pits are pricing in a larger-than-usual 5.2% swing. 

On the charts, JPM has taken a breather from its Sept. 29 record high of $318.01, though is still up 28.2% year to date. Down 0.6% at $307.21 today at last glance, the equity is headed for its sixth loss in seven sessions. The pullback has the shares testing their 40-day moving average, as well as an uptrend channel formed from their April 7 lows around $202.

Options bears are chiming in more than usual ahead of the event, though bulls are still winning out on an absolute basis. The security's 10-day put/call volume ratio of 0.86 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 90% of readings from the past year. 

Lastly, the security's Schaeffer's Volatility Scorecard (SVS) sits at a 74 out of 100, meaning JPM has exceeded option traders' volatility expectations during the past year.