JNJ Options Signal Bullish Setup: $207.5 Call OI Surges as FDA Wins and Acquisition Fuel Upside Potential

• JNJ trades at $207.25, up 0.28% with volume surging past 2.77M shares.
• Options market buzz: 2,133 open interest at the $207.5 call (this Friday’s expiry) and 1,693 at the $195 put.
• Technical edge: RSI near overbought (98.14), MACD histogram at 1.31, and price above all major moving averages.

Here’s the takeaway: JNJ’s options activity and technicals are painting a clear picture—upside potential is strong, but overbought conditions mean volatility could swing either way. Let’s break it down.

Bullish OI Clusters and the Quiet Battle for $210

Options traders are stacking up calls at the $207.5 and $210 strikes for Friday’s expiry, with 2,133 and 580 contracts outstanding respectively. That’s not just noise—it’s a vote of confidence. The $207.5 strike is just below the current price, suggesting buyers are hedging for a breakout above the intraday high of $207.62. Meanwhile, the $210 call (OI: 580) acts as a psychological target for those expecting a post-FDA approval rally.

On the put side, heavy open interest at $195 and $200 (1,693 and 1,399 contracts) shows some hedging activity, but the near-even put/call ratio (0.9998) means bearish sentiment isn’t dominating. The lack of block trades adds clarity—no whales are secretly shorting or accumulating here.

FDA Wins and a $3B Bet: Why the Market is Cheering

Johnson & Johnson’s recent FDA approvals for CAPLYTA® and DARZALEX FASPRO® are more than regulatory wins—they’re revenue accelerants. CAPLYTA’s no-weight-gain profile addresses a major patient pain point, while DARZALEX’s expansion into high-risk smoldering myeloma opens a new market.

Then there’s the $3.05B Halda Therapeutics acquisition. This isn’t just a big check—it’s a strategic move into prostate cancer, a $20B+ market. Investors love stories where M&A adds clear therapeutic value, and Halda’s HLD-0915 platform fits J&J’s oncology ambitions like a glove.

Trade Ideas: Calls for the Breakout, Puts for the Safety Net

For options traders, the $207.5 call (Nov 28 expiry) is a prime candidate. If JNJ closes above $207.62 today, this strike could see explosive gains. For a lower-risk play, consider a bull call spread: buy the $207.5 call and sell the $210 call (both Nov 28). The $2.50 spread gives you leverage if the stock gaps up.

Stock buyers should eye entry near $206.32 (today’s open) if support at the 30D MA ($193.40) holds. A breakout above $207.62 could target $210, where the 200D MA ($168.59) and recent FDA-driven momentum align.

Volatility on the Horizon: Bullish Trends with a Caveat

JNJ’s technicals and options data are screaming bullish, but the RSI near 98 is a red flag. A pullback to the Bollinger Middle Band ($194.34) isn’t out of the question. That said, the news flow—FDA wins, a blockbuster acquisition, and a strong conference presence—gives the stock a tailwind.

Bottom line: This is a high-probability setup for upside, but keep a close eye on the RSI and volume. If JNJ holds above $205.94 (today’s low), the bulls have a clear path to $210. If it dips below $205, the puts at $200 could act as a safety net. Either way, the options market is already pricing in a move—now it’s up to the stock to deliver.