This bank stock is losing momentum. How to profit from a pullback using options

The financial sector has been performing well recently, with major institutions like JPMorgan Chase and Wells Fargo reporting strong earnings. However, markets can be unpredictable, as seen in a recent mean reversion trade on Alibaba. Now, I am looking at a potential mean reversion trade on JPMorgan, with indicators showing a potential trend shift. I am considering a bear put spread strategy to capitalize on a possible pullback in JPMorgan’s stock. This trade involves buying a higher strike put and selling a lower strike put, with the potential to yield a 100% return on the initial risk if JPMorgan trades at or below $220 on the expiration date. However, there are risks involved, such as volatility from the upcoming elections and the FOMC rate decision. It’s important to seek advice from a financial advisor before making any decisions.