JPMorgan: If Trump's upcoming announcement can drive the market higher, investors should be bullish.

On May 8, U.S. President Trump previewed an upcoming "historic" announcement. JPMorgan told investors that if the announcement can boost the market, then investors should be bullish. On Tuesday, Trump revealed during a meeting with Canadian Prime Minister Carney 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 Trump said he would announce this message "before departing on Thursday, Friday, or next Monday." To get ahead of this announcement, investors should buy call options, particularly call options on the S&P 500 index. Bram Kaplan, head of JPMorgan's Americas equity derivation strategy, wrote in a note: "Considering other major catalysts in the coming week, the possibility of systematic strategy re-leveraging to strengthen upward momentum, and the normalization of short-term implied volatility levels over the past few weeks, hedging short-term upward risks is warranted." (Jin10)