JNJ Options Signal $210 Call Battle: Bullish Breakout or Bearish Trap?

• Big News: Johnson & Johnson’s TECVAYLI/DARZALEX combo showed 83% risk reduction in myeloma trials, with an FDA sBLA submitted.
• Options Heat: Next Friday’s $210 call options (OI: 4,628) are the most watched, while $190 puts (OI: 3,232) hint at downside hedges.
• Technical Crossroads: Short-term bearish momentum clashes with long-term bullish trends as JNJ trades near key Bollinger Band support.

Here’s the thing: JNJ’s options market is locked in a tug-of-war between bulls eyeing a post-earnings rebound and bears bracing for a pullback. With the stock hovering just below its 30-day moving average and a blockbuster drug approval in the pipeline, today’s $201.5 price tag feels like a setup for a breakout—or a trap. Let’s break it down.

The $210 Call vs. $190 Put Showdown

Options traders are betting on extremes. Next Friday’s $210 call options (JNJ20251219C210) dominate with 4,628 open contracts—the highest of any strike. That’s not just noise: it suggests smart money is pricing in a potential pop above $210, likely fueled by the recent trial results. But don’t ignore the puts. The same expiration date sees $190 puts (JNJ20251219P190) with 3,232 open contracts, nearly double the next put strike. This isn’t just hedging—it’s a bet that volatility could drag JNJ below its 200-day moving average ($170.47) if broader market fears resurface.

The put/call ratio (0.97) is almost balanced, but the skew toward deeper-out-the-money strikes tells a story. Bulls are optimistic but cautious (buying calls above current price), while bears are preparing for a sharper drop. The lack of block trades adds ambiguity—no whales are moving mountains here.

Why the Myeloma News Matters for Traders

That 83% risk reduction in relapsed myeloma patients isn’t just a headline—it’s a revenue catalyst. JNJ’s stock forecast already projects a 16.13% rise over three months, targeting $227–$245. But here’s the catch: the market hasn’t fully priced this in yet. The stock’s intraday dip (–0.06%) today suggests some profit-taking after last week’s rally.

The real question is timing. If the FDA acts quickly on that sBLA, JNJ could see a gap-up open. But until then, technical indicators like the MACD histogram (-0.66) and RSI (57.24) hint at a consolidation phase. The news is a tailwind, but the stock needs to clear $204.08 resistance to confirm bullish momentum.

Actionable Trade Ideas for TodayOptions Play: Buy-to-open JNJ20251219C210 calls at $201.5. Why? The $210 strike sits just above the upper Bollinger Band ($211.82), making it a psychological hurdle. If JNJ closes above $204 this week, these calls could gain steam. For risk management, sell half at a 20% gain if the stock hits $207 by Friday.Stock Play: Consider entries near $201.34 (intraday low) if support holds. Target zones are $204.08 (30D resistance) and $210 (key call strike). Place a stop-loss below $196.04 to protect against a breakdown.Bearish Hedge: Buy JNJ20251219P190 puts for downside protection. These are cheap at current prices but could pay off if a broader selloff hits biotech names.Volatility on the Horizon

JNJ isn’t just a stock—it’s a case study in balancing long-term innovation with short-term market sentiment. The next two weeks will test whether the myeloma news can override macro worries. If the stock holds above $196.04, the bulls have a path to $210. But a close below $190 would force a reevaluation of the bullish thesis.

Bottom line: This is a high-conviction setup. The options data and news both point to upside, but technicals warn of near-term fragility. For those willing to ride the JNJ wave, the $210 call strike is a lit match—just make sure the wind is in your favor before lighting it.