JNJ Stock Sticks to Breakeven After Band-Aid Update

Options bears are picking up the pace, however

Deputy Editor
Jun 12, 2020 at 3:22 PM
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Pharmaceutical giant Johnson & Johnson (NYSE:JNJ) is up 0.1% at $141 at last check, oscillating at the breakeven on an update that the company's Band-Aid brand will finally launch a line of bandages in a range of skin tones. The new product is being rolled out in solidarity with the Black Lives Matter movement, according to Band-Aid, and will "embrace the beauty of diverse skin." 

Sent back below recent support at the 100-day moving average, JNJ touched a two-month low of $140.28 earlier today. While the stock is now testing support at its year-over-year breakeven, for the week, it's eyeing a 4.2% loss. 

JNJ June 12

Analysts are bullish, with 12 out of 16 at a "buy" or better and the remaining four sporting a tepid "hold" rating. Meanwhile, the 12-month consensus price target of $164.17 is a 16.7% premium to current levels.  

In the last 10 weeks, 2.98 calls were bought for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than all but 1% of readings from the past year, meaning calls have rarely been more popular.

Today's options trading shows 32,000 calls and 22,000 puts traded so far, with put volume running double the intraday average. The monthly June 150 call is the most popular, while positions are being opened at the weekly 6/12 140-strike put, which closes later today. 

 

 

 

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