{"id":12828952,"date":"2025-07-14T14:01:03","date_gmt":"2025-07-14T18:01:03","guid":{"rendered":"https:\/\/www.philstockworld.com\/?p=12828952"},"modified":"2025-07-14T14:44:57","modified_gmt":"2025-07-14T18:44:57","slug":"philstockworld-top-trade-alert-july-14-2025-jpm-fi-and-ally","status":"publish","type":"post","link":"https:\/\/www.philstockworld.com\/2025\/07\/14\/philstockworld-top-trade-alert-july-14-2025-jpm-fi-and-ally\/","title":{"rendered":"PhilStockWorld Top Trade Alert &#8211; July 14 2025 &#8211; JPM, FI and ALLY"},"content":{"rendered":"<h2>Crypto is exploding (<a href=\"https:\/\/www.philstockworld.com\/2025\/07\/14\/monday-market-madness-bitcoin-hits-120000-to-kick-off-congress-crypto-week\/\" target=\"_blank\" rel=\"noopener\">see today&#8217;s Morning Report<\/a>) and we are hunting for values that still remain in the space:\u00a0\u00a0<\/h2>\n<h2><strong><span class=\"ql-emojiblot\" data-name=\"ship\"><span class=\"wpd-content-em wpdem-ship\">\ud83d\udea2<\/span><\/span>\u00a0Is There Any Value Left? Alternatives to Consider<\/strong><\/h2>\n<p>If you\u2019re seeking value in the crypto space, the leading names are \u201cchasey\u201d at current levels. However, a few strategies and sectors may offer more realistic opportunities:<\/p>\n<h2><strong>1.\u00a0<\/strong><strong>Crypto Infrastructure &amp; Picks-and-Shovels<\/strong><\/h2>\n<ul>\n<li>Marathon Digital (MARA):\u00a0A major Bitcoin miner, MARA\u2019s profitability is tightly linked to Bitcoin\u2019s price but trades at more traditional multiples compared to COIN or CRCL. Its focus on green energy and operational efficiency may appeal to value-oriented investors.<\/li>\n<li>Nvidia (NVDA):\u00a0While not a pure crypto play, Nvidia benefits from demand for GPUs used in mining and AI. Its valuation is high, but its earnings are diversified across multiple sectors.<\/li>\n<\/ul>\n<h2>\u00a0<\/h2>\n<h2><strong>2.\u00a0<\/strong><strong>Traditional Financials with Crypto Exposure<\/strong><\/h2>\n<p><strong>If you\u2019re looking for value in the crypto space but want to avoid the wild volatility of pure-play crypto stocks, it\u2019s worth focusing on traditional financial institutions quietly integrating digital assets and blockchain into their core businesses. Here\u2019s a rundown of the key players, how they\u2019re involved, and why it matters now.<\/strong><\/p>\n<h2><strong>Who\u2019s in the Game?<\/strong><\/h2>\n<p><strong>1. Major U.S. Banks<\/strong><\/p>\n<ul>\n<li>JPMorgan Chase: Runs its own blockchain platform (Onyx) for payment settlements and interbank transactions. JPMorgan also offers crypto services for institutional clients and has begun integrating select stablecoins for cross-border payments.<\/li>\n<li>Goldman Sachs: Provides crypto investment products to wealthy clients and is developing blockchain-based trading and asset management solutions. They\u2019re also exploring tokenization of traditional assets.<\/li>\n<li>BankProv: A U.S. bank catering to crypto and blockchain businesses, offering accounts and lending services to digital asset companies.<\/li>\n<li>Customers Bank: Launched CBIT, a blockchain-based token for real-time USD payments, serving crypto exchanges and institutional traders.<\/li>\n<\/ul>\n<p><strong>2. Payment Processors and Networks<\/strong><\/p>\n<ul>\n<li>Visa: Has processed hundreds of millions in stablecoin settlements and is expanding support for regulated stablecoins like USDC and USDG, making stablecoin payments mainstream for both consumers and businesses.<\/li>\n<li>Mastercard: Enables stablecoin payments and settlements globally, integrating digital dollars (PYUSD, USDG, FIUSD) into its network for both merchants and consumers.<\/li>\n<li>Fiserv: Partnered with Circle and PayPal to launch FIUSD, a dollar-backed stablecoin now integrated into banking and payments infrastructure.<\/li>\n<\/ul>\n<p><strong>3. Digital Banks and Fintechs<\/strong><\/p>\n<ul>\n<li>Revolut: Offers crypto trading and custody for retail and business clients, blending traditional banking with digital asset access.<\/li>\n<li>Ally Bank: Provides access to crypto investment products and is considered one of the most crypto-friendly U.S. banks.<\/li>\n<li>Evolve Bank &amp; Trust: Known for developer-friendly APIs and digital asset custody solutions, powering seamless transitions between cash and crypto for fintech apps.<\/li>\n<\/ul>\n<h2>\u00a0<\/h2>\n<h2><strong>What Are They Actually Doing?<\/strong><\/h2>\n<ul>\n<li>Blockchain Integration: Banks are using blockchain for faster settlements, reduced costs, and improved transparency. This includes everything from cross-border payments to digitizing trade finance and streamlining compliance.<\/li>\n<li>Stablecoin Adoption: Payment networks and banks are embedding stablecoins into their payment rails, allowing for instant, low-fee transactions and new digital treasury solutions for businesses.<\/li>\n<li>Tokenization: Traditional institutions are converting real-world assets (like real estate, private equity, and commodities) into digital tokens, making them tradable and more liquid. This opens up fractional ownership and access to new investment products.<\/li>\n<li>Custody and Compliance: With regulatory clarity, more banks are offering crypto custody and compliance services, making it easier for institutions and high-net-worth clients to hold digital assets securely.<\/li>\n<\/ul>\n<h2>\u00a0<\/h2>\n<h2><strong>Why Does It Matter?<\/strong><\/h2>\n<ul>\n<li>Legitimacy and Scale: The involvement of household-name banks and payment processors signals that crypto is moving from the fringe to the financial mainstream. Institutional adoption brings credibility, larger capital flows, and more robust infrastructure.<\/li>\n<li>Revenue and Efficiency: Banks are tapping new revenue streams from crypto services while using blockchain to cut costs and improve operational efficiency. Payment processors see stablecoins as a way to offer faster, cheaper, and programmable payments.<\/li>\n<li>Risk Management: Regulatory clarity (like the GENIUS Act) gives traditional financials a green light to experiment and innovate, but with guardrails that help manage risks and protect consumers.<\/li>\n<li>Competitive Edge: As client demand for digital assets grows, banks that fail to adapt risk losing relevance. Those leaning in are positioning themselves for the next wave of financial innovation.<\/li>\n<\/ul>\n<h2>\u00a0<\/h2>\n<h2><strong>Bottom Line<\/strong><\/h2>\n<p><strong>Traditional financials aren\u2019t just dipping a toe into crypto\u2014they\u2019re building the plumbing for digital assets to become part of everyday finance. For investors, this means there are now ways to play crypto\u2019s rise through established companies with real earnings, diversified businesses, and a history of surviving market cycles. The best value may be found not in the pure-play crypto stocks, but in these \u201cpicks-and-shovels\u201d giants and innovative banks quietly reshaping the landscape from within.<\/strong><\/p>\n<p>So, on the whole, we have discovered another way for JPM (14x) to make money. You know I love JPM but they haven\u2019t had a sell-off recently so hanging out on the Watch List at $288.<\/p>\n<p><a href=\"https:\/\/publish.finviz.com\/071425\/JPMd125924747i.png\" target=\"_blank\" rel=\"nofollow noopener noreferrer ugc\"><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/071425\/JPMd125924747i.png\" alt=\"comment image\" \/><\/a><\/p>\n<p style=\"padding-left: 40px;\"><span style=\"color: #0000ff;\"><strong>Since we have $458,000 in CASH!!! in the LTP (up $40,218 since June \u2013 8% of $500,000), we can afford to plant a flag in JPM:<\/strong><\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span style=\"color: #0000ff;\"><strong>Buy 20 JPM Dec 2027 $300 calls at $43.50 ($87,000)<\/strong><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><strong>Sell 15 JPM Dec 2027 $350 calls at $24.50 ($36,750)<\/strong><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><strong>Sell 5 JPM 2027 $270 puts at $23 ($11,500)<\/strong><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><strong>Sell 7 JPM Oct $280 calls for $20.20 ($14,140)<\/strong><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><strong>Sell 5 JPM Oct $280 puts at $9.60 ($4,800)<\/strong><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><span style=\"color: #0000ff;\"><strong>That\u2019s net $19,810 on the $100,000+ spread with $80,190 (404%) upside potential but I\u2019d rather see JPM go LOWER at some point so we can roll our longs to lower strikes and double down or something than \u201cjust\u201d make $80,190. For another thing, consider we sold $18,940 of mostly premium using just 95 of our 886 days \u2013 that has some very exciting potential too!<\/strong><\/span><\/p>\n<p>This is a Butterfly play and we\u2019re mixing strategies in the LTP this cycle, rather than keeping specific portfolios. Whether the longs make money or not, we\u2019ll probably make $100,000 selling short-term puts and calls on this spread before its done\u2026.<\/p>\n<p>That\u2019s 20% of the LTPs starting $500,000 with one trade that\u2019s only using $7,560 of our cash! The margin requirement (non-Portfolio) is about $40,000 on the puts and our allocation blocks are $100,000 so yes \u2013 please go lower!<\/p>\n<p>&nbsp;<\/p>\n<p>FI is also good for the LTP. They are still under the radar but $91.7Bn at $167.50 is not small player with $20Bn in Revenues moving up to $22.5Bn next year (12.5% growth) and $3.1Bn in profits last year moving on to $6.3Bn and I wouldn\u2019t believe it but they hit aggressive Q1 projections and haven\u2019t missed in ages and we know the trend is their friend here.<\/p>\n<p><a href=\"https:\/\/publish.finviz.com\/071425\/FId131988436i.png\" target=\"_blank\" rel=\"nofollow noopener noreferrer ugc\"><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/071425\/FId131988436i.png\" alt=\"comment image\" \/><\/a><\/p>\n<p style=\"padding-left: 40px;\"><span style=\"color: #0000ff;\"><strong>So, for the LTP, let\u2019s:<\/strong><\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span style=\"color: #0000ff;\"><strong>Sell 10 FI 2027 $150 puts for $15.20 ($15,200)<\/strong><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><strong>Buy 20 FI 2027 $150 calls for $41 ($82,000)<\/strong><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><strong>Sell 20 FI 2027 $190 calls for $21.75 ($43,500)<\/strong><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><span style=\"color: #0000ff;\"><strong>That\u2019s net $23,300 on the $80,000 spread with $56,700 (243%) upside potential that\u2019s $35,000 in the money to start and I think we\u2019re too low in the channel to sell short-term calls but I\u2019d also like to see earnings (end of month) before selling more puts.<\/strong><\/span><\/p>\n<p>ALLY is interesting. They sold their CC business this year as well as their POS business to our own SYF last year to focus on digital banking and auto finance. Both are growing rapidly and ALLY had 3.8M loan applications in Q1 \u2013 as an ALL DIGITAL BANK (low operating costs).<\/p>\n<p>So, in short, things were going so well last year that they raised capital selling non-core assets so they could 10x the cash and leverage tremendous growth.<\/p>\n<p><a href=\"https:\/\/publish.finviz.com\/071425\/ALLYd133120228i.png\" target=\"_blank\" rel=\"nofollow noopener noreferrer ugc\"><img decoding=\"async\" src=\"https:\/\/publish.finviz.com\/071425\/ALLYd133120228i.png\" alt=\"comment image\" \/><\/a><\/p>\n<p style=\"padding-left: 40px;\"><span style=\"color: #0000ff;\"><strong>$40.72 is $12.4Bn and last year they had $8.9Bn in revenues and made $668M (18.5x) and this year they are packing $8Bn in revenues with $1Bn (sold divisions) in profit (12.4x) and next year they expect $9.1Bn in revenues and $1.6Bn in profit (7.75x) so, for the LTP, let\u2019s:<\/strong><\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span style=\"color: #0000ff;\"><strong>Sell 15 ALLY 2027 $40 puts for $5.50 ($8,250)<\/strong><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><strong>Buy 25 ALLY 2027 $35 calls for $9.50 ($23,750)<\/strong><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><strong>Sell 20 ALLY 2027 $47 calls for $4 ($8,000)<\/strong><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><strong>Sell 7 ALLY Sept $40 calls for $2.55 ($1,785)<\/strong><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><strong>Sell 5 ALLY Sept $40 puts for $1.85 ($925)<\/strong><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><span style=\"color: #0000ff;\"><strong>That\u2019s net $4,790 on the $30,000 spread with $25,210 (526%) upside potential and we\u2019ll have a nice little short-term option-selling business on the side!<\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crypto is exploding (see today&#8217;s Morning Report) and we are hunting for values that still remain in the space:\u00a0\u00a0 \ud83d\udea2\u00a0Is There Any Value Left? Alternatives to Consider If you\u2019re seeking value in the crypto space, the leading names are \u201cchasey\u201d at current levels. However, a few strategies and sectors may offer more realistic opportunities: 1.\u00a0Crypto [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":12828953,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26305],"tags":[],"class_list":{"0":"post-12828952","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-top-trades"},"_links":{"self":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts\/12828952","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/comments?post=12828952"}],"version-history":[{"count":3,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts\/12828952\/revisions"}],"predecessor-version":[{"id":12828956,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts\/12828952\/revisions\/12828956"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/media\/12828953"}],"wp:attachment":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/media?parent=12828952"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/categories?post=12828952"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/tags?post=12828952"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}