Options Traders Eye Blue-Chip Stock After Earnings

The equity is coming off its 10th-straight daily loss

Digital Content Manager
Jan 25, 2022 at 10:25 AM
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Johnson & Johnson (NYSE:JNJ) is struggling for direction today, last seen up 0.3% to trade at $162.88, after the blue-chip concern posted slightly better-than-expected fourth-quarter earnings. However, revenue missed analysts' estimates, with Covid-19 vaccine sales for 2021 slipping just below its goal and coming in at $2.39 billion. Still, the company expects up to $3.5 billion in vaccine revenue this year, though manufacturing and demand challenges remain.

The security has had a rocky past few months, just yesterday falling to its lowest level since early December, after facing rejection at the $174 level earlier this month. Shares also broke back below their 80-day moving average, stringing together 10-straight losses ahead of today's session. 

The options pits are overwhelmingly bearish. This is per Johnson & Johnson stock's 10-day put/call volume ratio of 1.08 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 98th percentile of annual range. This indicates puts have been getting picked up at a much faster-than-usual clip. 

Options traders are blasting the security today. So far, 9,358 calls and 8,255 puts have been exchanged, or double the intraday average. Most popular is the February 170 call, followed by the weekly 1/28 155-strike put. 

 

 

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