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
facebook twitter linkedin

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.

Today's options are more optimistic. So far, 5,969 calls and 2,991 puts have crossed the tape, or triple the intraday average. The most popular contracts are the 7/22 182.50- and 180-strike calls.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners