JNJ Options Signal $210 Call Battle: How to Play the Bullish Breakout Amid Legal and Patent Risks

• JNJ trades at $202.38, up 0.22% with volume at 3.2M shares.
• Next Friday’s options show 4,621 open interest at $210 calls vs. 3,222 puts at $190.
• Director John Morikis bought 1,250 shares at $206.15—a 209% ownership boost.

Here’s the takeaway: JNJ’s options market is locked in a tug-of-war between bulls eyeing a $210 breakout and bears bracing for a $190 drop. The stock’s technicals and news flow suggest a high-stakes setup—let’s break it down.

The Call-Put Imbalance: A Battle for $210

Next Friday’s options chain tells a story. The JNJ20251219C210 call has 4,621 open contracts—the highest of any strike—while the JNJ20251219P190 put has 3,222. This isn’t just noise: it’s a vote of confidence from options players. Bulls are betting on a rebound above the 30D moving average ($196.31) and a test of the 2025 high of $212.96. But don’t ignore the puts: the JNJ20251219P175 strike (2,973 OI) hints at deeper pessimism, especially with Stelara’s patent cliff looming. Block trading is quiet, so no whale moves to flag—yet.

News That Could Tilt the Scales

JNJ’s recent drug approval for RYBREVANT in Scotland is a bright spot, but it’s a niche win. The bigger story is the 40% sales drop from Stelara’s biosimilar competition and $2B Medicare Part D hit. These risks are already priced in—JNJ’s forward P/E of 16.4 is a discount to its 10-year average. But the director’s share purchase and Guggenheim’s $227 price target suggest institutional conviction. The question is: will the market reward J&J’s 2026 pipeline (Carvykti, Tecvayli) or punish it for near-term pain?

Actionable Trades: Calls for Breakouts, Puts for Protection

For options traders: Buy the JNJ20251219C210 call if JNJ closes above $203.25 (intraday high). The RSI at 67.22 suggests overbought territory, but the MACD histogram (-0.43) is narrowing—could signal a bullish crossover. For downside hedges: the JNJ20251219P190 put offers protection if the stock dips below the Bollinger middle band ($200.56).

Stock traders: Consider entry near $200.55 (30D MA) with a target at $210 if the 200D MA ($170.27) holds. A breakdown below $190 would trigger the puts and force a reevaluation. Use the Bollinger lower band ($188.16) as a hard stop.

Volatility on the Horizon

JNJ’s story is a classic tug-of-war between near-term pain and long-term promise. The options market is pricing in a $210 inflection point—hit that level, and the 200D MA becomes a psychological floor. Miss it, and the puts at $175 could drag the stock into a deeper correction. Either way, December is shaping up to be a pivotal month. Stay nimble, and let the options data guide your entries.