The Long and Short of JPMorgan Chase & Co. (JPM)

Shares of JPMorgan Chase & Co. JPM are lower on the session by 1.05%, currently trading at $47.14. The company is scheduled to report earnings before the bell on April 13th. Playing stocks into earnings is often considered flat out gambling, but if done right, traders can take advantage of near-term discrepancies in price to reap large rewards. Feeling lucky? Here are few trade setups to voice your bear or bull opinion… Bulls: Bulls will note the upward-trending 20-day, 50-day, and 200-day moving averages, saying that shares have garnered and have maintained bull support. The stock recently broke through the $46.00 level, regained it, consolidated, and moved higher from there, which is key. Bulls are all gunning for the $48.00, which is a multi-year resistance level that, if broken, could propel shares dramatically higher. If you are bullish on the name, you could buy the $48.00/45.00 risk reversal for a net debit of $0.38. Bears: Bears will note that JPMorgan Chase & Co. has been repeatedly shot down at the $48.00 level, which it is now nearing once again. You should recall that after touching $48.00 in April 2010, shares screamed lower, ultimately touching $35.00. Bears will also note that shares are once again overbought here (stochastics). A bearish trader could buy the June $47/44/40 put tree for a net debit of $0.62. This is a very cheap way of betting that JPMorgan Chase & Co. initiates a brand new downside trend over the next few months. JPMorgan Chase & Co. is a financial holding company. JPMorgan Chase's principal bank subsidiaries are JPMorgan Chase Bank, National Association, a national bank with United States branches in 23 states, and Chase Bank USA, National Association, a national bank that is the Firm's credit card-issuing bank. Wondering how Benzinga's Chief Options Strategist is playing JPMClick here to find out…