JPMorgan: If Trump's Upcoming Announcement Can Boost the Market, Investors Should Be Bullish

U.S. President Trump has hinted at an upcoming "most significant" announcement, and JPMorgan has advised investors to be bullish if the announcement boosts the market. On Tuesday, Trump revealed during a meeting with Canadian Prime Minister Justin Trudeau in the Oval Office that he plans to announce a "very, very significant message" before his trip to the Middle East next week. In response, JPMorgan stated that since Trump mentioned he would announce this "before departing on Thursday, Friday, or next Monday," investors should buy call options, particularly on the S&P 500 index, to get ahead of the news. Bram Kaplan, JPMorgan's Head of Americas Equity Derivatives Strategy, wrote in a note: Considering other major catalysts in the coming week, the potential for systematic strategies to re-leverage to enhance upward momentum, and the normalization of short-term implied volatility levels in recent weeks, hedging short-term upside risk is worthwhile.