JNJ Options Signal Bullish Bias at $210 Calls vs. Bearish Pressure at $205 Puts: Here’s How to Position for Volatility

• JNJ trades at $206.87, down 0.44% from $207.78, with intraday support near $206.81 and resistance at $208.04.
• Options data shows heavy call open interest at $210 (1,792 contracts) and put OI at $205 (2,288 contracts) for Friday’s expiry.
• Analyst upgrades and a 1.1% price pop highlight optimism, but a failed Phase 2b trial adds near-term uncertainty.

The stock is caught between bullish momentum and bearish caution—here’s how to navigate the tightrope.The Options Imbalance: A Battle Between $210 Bulls and $205 Bears

This Friday’s options chain tells a story of conflicting expectations. Call open interest peaks at $210 (JNJ20251226C210), with 1,792 contracts—nearly double the next strike. Puts dominate at $205 (JNJ20251226P205), with 2,288 contracts, suggesting a 5% downside hedge. The put/call ratio of 0.95 (favoring calls) hints at a slight bullish tilt, but the heavy put OI at $205 acts as a safety net for bears. Think of it like a tug-of-war: bulls need a break above $208.04 to rally, while a close below $206.81 could trigger a test of the $205 support level. No block trades complicate the picture—this is retail and institutional money betting on extremes.

News Flow: Optimism Outweighs Setbacks, For Now

The failed DUPLEX-AD trial is a speed bump, not a crash. J&J’s pivot to other AD therapies (like bispecific antibodies) keeps the pipeline intact. Analysts, meanwhile, are pricing in optimism: Citigroup’s $232 target and Wells Fargo’s $230 nod reflect confidence in oncology drugs like Carvykti and Tecvayli. The stock’s 2.5% dividend yield and low beta (0.36) make it a defensive play in a volatile market. But here’s the catch: if the $205 support breaks, the 200D moving average at $154.50 becomes a grim long-term target. Investor sentiment is split—trust the fundamentals, but don’t ignore the puts.

Actionable Trades: Calls for Breakouts, Puts for Protection

For options traders, the $210 call (JNJ20260102C210) expiring next Friday is a high-conviction play. If JNJ closes above $208.04 today, this strike offers leverage on a potential run to $215. Alternatively, sell the $205 put (JNJ20260102P205) to collect premium if the stock holds above $206.81. For stock buyers, consider entries near $205.46 (30D support) with a target at $210 if the RSI (58.5) crosses 60. A stop-loss below $206.81 is critical—this is where the 30D moving average ($204.71) starts to lose grip.

Volatility on the Horizon: Positioning for a Break

JNJ isn’t breaking out or breaking down—yet. The Bollinger Bands squeeze (upper at $213.71, lower at $199.69) suggests a volatile move is coming. With the 200D MA ($173.03) far below current levels, long-term bulls have room to breathe. But short-term traders need to watch the $205–$210 range like hawks. This is where the options market and technicals align: a breakout above $210 could reignite the 18.09 P/E optimism, while a breakdown to $200 would force a reevaluation of the bullish thesis. Position accordingly—this stock isn’t sleeping through the night.