JP Morgan Chase (JPM) NewsBite - JPM Rises as BSC Shareholders Approve Buyout

Posted on Thursday, May 29, 2008 11:24 AM
JP Morgan Chase (JPM) opened at $42.69. So far today the stock has hit a low of $42.29 and a high of $43.77. JPM is now trading at $43.70, up 0.84 (1.96%). After hitting a one-year high of $52.31 last May, the stock hit a one-year low of $36.01 in March. Shares of JPM are trading higher today on news that shareholders of Bear Stearns Cos. (BSC) have approved JPM's $2.2 billion buyout of the investment bank. JPM will buy BSC for about $10 a share. The deal is expected to become official tomorrow. Technical indicators for JPM are bullish and deteriorating, while S&P gives the stock its highest 5 Stars (out of 5) Strong Buy rating. For a hedged play on this stock, consider a July bull-put spread below the $37.50 range. JPM hasn't been below 37.50 since rising out of its one-year low in March, and could lose up to 14.2% before this trade loses money. [LHF- Seven Summits Strategic Investments NewsBite]
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