Options Bulls Brush Off Johnson & Johnson's Lowered Outlook

A stronger U.S. dollar is weighing on international sales

Digital Content Manager
Jul 19, 2022 at 10:05 AM
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Johnson & Johnson (NYSE:JNJ) took over the earnings confessional earlier to report a second-quarter earnings and revenue beat, thanks in part to the double-digit sales growth of cancer drug Darzalex and Crohn's disease drug Stelara. However, the company slashed its full-year adjusted profit outlook, noting a stronger U.S. dollar is weighing on international sales. At last check, JNJ is up 0.4% at $174.96.

The equity took a step back after hitting an April 25, record high of $186.69, but bounced off the $167 region in mid-June -- its lowest level since March -- to reclaim support from its 180-day moving average. Over the past nine months, Johnson & Johnson stock has added 8.8%.

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), JNJ's 50-day put/call volume ratio of 1.01 sits higher than 93% of readings from the past 12 months. This means long puts have been getting picked up at a much faster-than-usual pace in the last 10 weeks.

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