If you listen to the CEO of JPM you’ll find a sense of direction affirmed throughout the company. Dimon runs that company from the top but always with concerns for the whole. It is our opinion that it is one of the best managed firms in the world.
The target on JPM is $120 within 12 months. In an effort to get some yield we are looking at selling the January $110 for roughly $4.60. That’s a max price of $114.60 just slightly under the target. Based on the current price of $99.40 that gives you a yield of 15.20% on the call if called away, plus 3.30% dividend during the year, for a total of 18.50 %. We like this approach.
On the downside the breakeven would be $94.80 and the dividends would lower that to $91.60.
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