JPMorgan Chase (NYSE:JPM) has come under pressure in the past few months as the gains experienced after the last earnings report fade. After peaking at $364 in August, it has slipped by over 8.75% to the current $332. This retreat will come in the spotlight as it publishes its third-quarter earnings.

Options Market Predicts Volatility After JPMorgan’s Earnings

JPMorgan will be one of the top companies to publish its results in this earnings season. The options market predicts that the stock will be moderately volatile. Its implied volatility has risen to 35%, higher than the historical average of 16.5%.

Most of the calls are at $340 and $342. At the higher side, that implies a 3% increase from the current level. On the other hand, most of the puts are at $330, also slightly lower than the current price.

Historically, JPMorgan’s stock tends to experience mild movements after its earnings. For example, its stock rose by less than 4% after its earnings report in July. Before that, it rose by about 3% after releasing its earnings in April.

The upcoming results are expected to show that JPMorgan’s revenue growth accelerated in the third quarter. Benzinga data shows that the average estimate is that its revenue jumped by 10% in the quarter to $51.1 billion. Its earnings-per-share is also expected to rise from $5.07 in Q3’25 to $5.93. JPMorgan has a long track record of beating analysts’ estimates. In a recent note, a Seaport analysts said:

"While we raised our net interest income forecast for next year on the higher forward curve (and we anticipate a solid NII guide for 2027), we are above consensus on expenses, which could be guided higher as well."

Investment Banking Revenue in Focus

A key catalyst for JPMorgan’s stock after earnings will be its investment banking business. Recent data shows that global M&A activity slowed in the third quarter to $993 billion, down by 41% from a year earlier.

This is a significant deceleration as analysts were expecting this business to show substantial growth this year. Its investment banking revenue rose by 45% in the second quarter to $3.9 billion.

Traders will also focus on the trading business, which is expected to slowdown. In a recent statement, Nomura, a top Japanese bank, said that its trading business increased modestly in the third quarter. JPMorgan’s markets business made $12.1 billion in Q2, up by 35% YoY.

Analysts are highly bullish on JPMorgan, with the average estimate being $462, up by 22% from the current level. Bernstein has a target of $512, while Mizuho and DA Davidson have a target of $493 and $516, respectively.

JPM Stock Has Bottomed at a Key Support

Technically, JPMorgan stock bottomed at a crucial support level. Its lowest level last week coincided with the ascending trendline that connects the lowest swings in March, May, June, and October. It also settled along the 200-day Exponential Moving Average (EMA). Therefore, the stock will likely resume the uptrend, potentially to $34o after its earnings report.