JPMorgan Quant Says Buy Bank Puts Before Jobs Data, French Polls
- Softening of U.S. economic jobs data warrants caution: Quigg
- Bank advises buying financial ETF puts, Treasury ETF calls
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Investors should buy put options on an exchange-traded fund of financial shares before Friday’s U.S. jobs report and the upcoming French presidential election on Sunday, according to JPMorgan Chase & Co.’s quantitative and derivatives strategy research team.
“If Friday’s payroll report disappoints, the back-to-back weaker results may cause investors to further question the economy’s momentum,” Shawn Quigg and Marko Kolanovic, New York-based research strategists at JPMorgan, wrote in a report dated May 2. “We see greater reward-risk of positioning for a disappointing result.”