JPMorgan, Citigroup: How The Options Market Is Factoring In Potential Moves Ahead Of Q1 Results Tomorrow

JPMorgan Chase & Co JPM and Citigroup Inc C are scheduled to report their quarterly earnings on Friday and the one number that market participants will be keenly watching out for is the deposits figure.

Analysts are forecasting that depositors looking for higher returns from alternatives such as money market funds withdrew almost $100 billion in aggregate from JPMorgan, Bank of America Corp BAC, Citi and Wells Fargo & Co WFC in the first three months of 2023, reported Financial Times citing consensus data compiled by Bloomberg.

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Meanwhile, here's a look at how professional traders are positioning themselves in the options market ahead of the earnings release:

1. JPMorgan: Options market data shows significant open interest accumulation at the $135 Call strike, for the contract expiring on Friday. This indicates traders are expecting this level to provide a decent resistance. It is noteworthy that the stock closed at $128.5 on Wednesday and hence a 5% move on the upside is being factored in by the market. On the downside, the $125 level shows a relatively higher open interest accumulation, although the lower numbers show a lack of conviction for the level to act as a support.

2. Citigroup: The stock closed at $46.92 on Wednesday. Options expiring on Friday show significant open interest accumulation at the $47 Call strike, indicating the level could act as a resistance. On the downside, the $44 Put strike has a decent open interest build-up, indicating the level could act as support for the near term.

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