JNJ Options Signal Bullish Bias as $210 Call OI Surges: Here’s How to Position for the Upcoming Volatility

• JNJ trades at $207.78, up 0.97% with volume surging past 2.3M shares
• Options data shows 1,184 open interest at the $210 call (Friday expiry), vs. 2,035 puts at $205
• Legal risks persist from $1.5B talc verdict, but analysts still target $210.25

The stock isn’t just moving—it’s telling a story. And right now, that story leans bullish. With calls and puts locked in a tight battle near key strike prices, JNJ sits at a crossroads between short-term profit-taking and long-term conviction. Let’s break down what the numbers really mean.Calls Climb While Puts Watch Closely: A Tale of Two Striking Levels

If you’ve been tracking JNJ’s options, you’ve noticed the tug-of-war between bulls and bears. This Friday’s $210 call (JNJ20251226C210) leads with 1,184 open contracts—nearly double the next call strike. That’s not just noise; it’s a vote of confidence from traders expecting a push above current levels before expiration.

But don’t dismiss the puts. The $205 strike (JNJ20251226P205) dominates with 2,035 open puts, nearly double the next put. This suggests a floor exists around $205, where sellers are ready to step in if the stock stumbles. The put/call ratio of 0.958 (almost balanced) tells me the market isn’t leaning hard in either direction—yet.

Block trading? None to report. So no whale moves to explain this. Just regular traders hedging, speculating, or positioning for the February options rollout.

Legal Storm Clouds vs. Analyst Optimism: What’s the Real JNJ?

The news isn’t all smooth sailing. That $1.5B talc verdict in Baltimore? It’s a sword hanging over JNJ’s head. But here’s the twist: analysts still rate it a “Moderate Buy” with a $210.25 price target. How does that work?

Think of it like a storm approaching. The market knows the clouds are gathering, but JNJ’s recent EU approval for Tremfya and its new Rybrevant delivery method are life rafts. Investors are betting the company can weather the legal fire while its pipeline keeps generating cash. The options data? It’s mirroring that cautious optimism.

Trade Ideas: Calls for the Bold, Puts for the Pragmatic

Let’s get tactical. If you’re bullish but want to limit risk, consider buying the JNJ20251226C210 call. At $207.78, the stock needs to break $210 to make this pay off—but with the 20-day EMA at $207.78 and Bollinger Bands squeezing tight, a breakout feels imminent.

For a safer play, try a bull put spread: buy the JNJ20251226P205 put and sell the JNJ20251226P200 put. If JNJ holds above $205, you pocket the premium difference. It’s a $4.75 max risk for a $5 reward if the stock stabilizes.

Stock traders: Watch the $206.65 middle Bollinger Band as support. If it holds, target $210.25—the analyst average. But if it breaks below $205.22 (30D support), tighten your stops.

Volatility on the Horizon: Balancing Risk and Reward

JNJ isn’t a one-way bet. The legal risks are real, and the puts at $205 are there for a reason. But the options market isn’t pricing in a collapse—it’s pricing in a fight.

Here’s the takeaway: Position yourself to profit from the expected $210.25 target, but hedge with those puts. The next few days could be a rollercoaster, but if JNJ can hold its ground above $205, the long-term bulls might finally get their turn to shine.