Johnson & Johnson Stock Scaling Dow After COVID-19 Vaccine Update

JNJ also said human testing for the vaccine will begin this September

Deputy Editor
Mar 30, 2020 at 10:17 AM
facebook twitter linkedin


Johnson & Johnson (NYSE:JNJ) is the top Dow stock this morning, up 5.5% at $129.86, after the company announced that its experimental vaccine for the coronavirus will be ready for human testing by September, while the drug’s availability for widespread emergency use will be ready in early 2021. Additionally, the drugmaker said it has committed more than $1 billion of investment in cooperation with the Department of Health and Human Services to provide over 1 billion vaccines worldwide.

Johnson & Johnson stock has fallen 20% since hitting an all-time high of $154.50 last month. The security is still facing a 7% year-over-year deficit, and today's rally appears to have lost steam below its 20-day moving average.

Analysts are extremely optimistic on JNJ stock. Of the 15 analysts in coverage, 11 rate it a “buy” or better. The remaining four analysts sport a “hold” position, with not a single "sell" on the books. Additionally, the consensus 12-month price target of $159.18 is a respectable 29.2% premium to its current level.

In the options pits, calls are prevalent. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), JNJ sports a 50-day call/put volume ratio of 2.81. Not only does this mean that calls outnumber puts by a nearly three-to-one ratio, but that ratio sits higher than 98% of readings from the past year, indicating that such a call skew is rare.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

 


 


 
Special Offers from Schaeffer's Trading Partners