Buy Bullish JPMorgan, Wells Fargo Options, Morgan Stanley Says
This article is for subscribers only.
Investors should buy bullish JPMorgan Chase & Co. and Wells Fargo & Co. options because profits will increase amid strengthening consumer credit, Morgan Stanley said.
Christopher Metli and Sivan Mahadevan, derivatives strategists at Morgan Stanley, recommended buying JPMorgan’s July $47 call while selling a July $50 call, a strategy known as a call spread. The shares rose 0.8 percent to $45.50 yesterday. The strategists also recommended October $31-$35 call spreads on Wells Fargo, which added 1.4 percent to $29.27.