Call Traders Blitz Blue-Chip Vaccine Maker After Update

Year-over-year, JNJ is up 11%

Assistant Editor
Dec 30, 2021 at 9:59 AM
facebook twitter linkedin

Johnson & Johnson (NYSE:JNJ) stock is up 0.5% to trade at $172.38 at last check, after the blue-chip pharma giant provided an update for its Covid-19 booster shot. A South African study found that one dose of the company's booster shot was found to be 85% at preventing hospitalizations. However, that study has yet to be peer-reviewed.

Bullish options traders are responding to today's news. So far, 3,934 calls have exchanged hands, volume that's double the intraday amount and the 1,648 puts that have crossed the tape. Most popular, however, is the January 2022 170 put, followed by the weekly 12/31 175-strike call.

Now could be a good time to weigh in on the stock's next move with options. Johnson & Johnson stock's Schaeffer's Volatility Index (SVI) of 13% stands higher than just 6% of readings from the past year. This means options traders are pricing in low volatility expectations for JNJ at the moment.

While other stocks that are linked to the manufacturing of vaccines have suffered on the charts lately, it's been a different story for JNJ. Following news of a stock split, the shares have traded as low as $155 and are now testing their highest level since September, all within the span of a month. Year-over-year, JNJ is up 11.3%. 


Special Offers from Schaeffer's Trading Partners