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    h
    indicates decreasing volatility.

    Conclusion: JPM sets up a classic text book buy-write
    opportunity above. After finding a new trading range, the stock
    conso
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    NOTES OF J.P.MORGAN (JPM)
    Covered Call

    1. By June of 2003, JPM had traded up from a lower trading range
    in the $25.00 area to a new range around $35.00.

    2. Since entering the new trading range in June, the stock has
    consolidated into a relatively flat, horizontal trading channel.
    For the most part, this channel is only around $3.00 to $4.00
    wide.

    3. This trading channel is not only tight, but it seems to be
    equally dispersed around the $35.00 mark. The stock does not
    seem to venture very far on either side of $35.00.

    4. From the time that the stock enters the trading channel, the
    range of the channel has been decreasing or tightening, which
    indicates decreasing volatility.

    Conclusion: JPM sets up a classic text book buy-write
    opportunity above. After finding a new trading range, the stock
    consol
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    . Since entering the new trading range in June, the stock has
    consolidated into a relatively flat, horizontal trading channel.
    For the most part, this channel is only around $3.00 to $4.00
    wide.

    3. This trading channel is not only tight, but it seems to be
    equally dispersed around the $35.00 mark. The stock does not
    seem to venture very far on either side of $35.00.

    4. From the time that the stock enters the trading channel, the
    range of the channel has been decreasing or tightening, which
    indicates decreasing volatility.

    Conclusion: JPM sets up a classic text book buy-write
    opportunity above. After finding a new trading range, the stock
    conso
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    ound $3.00 to $4.00
    wide.

    3. This trading channel is not only tight, but it seems to be
    equally dispersed around the $35.00 mark. The stock does not
    seem to venture very far on either side of $35.00.

    4. From the time that the stock enters the trading channel, the
    range of the channel has been decreasing or tightening, which
    indicates decreasing volatility.

    Conclusion: JPM sets up a classic text book buy-write
    opportunity above. After finding a new trading range, the stock
    conso
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    nture very far on either side of $35.00.

    4. From the time that the stock enters the trading channel, the
    range of the channel has been decreasing or tightening, which
    indicates decreasing volatility.

    Conclusion: JPM sets up a classic text book buy-write
    opportunity above. After finding a new trading range, the stock
    conso
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    h
    indicates decreasing volatility.

    Conclusion: JPM sets up a classic text book buy-write
    opportunity above. After finding a new trading range, the stock
    consolidates into a tight, trading channel that is almost
    horizontal. Further, this channel tightens and does not deviate
    from $35.00 to the point where it even comes close to a channel
    line violation.

    Here, an investor would most likely be interested in writing the
    35 strike price calls to collect premium as the stock trades
    sideways. Obviously, there is no way to predict how long a stock
    will consolidate like this, but the risks are low, and in this
    case – the covered call strategy would have returned some very
    nice, low risk returns over this period.

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