JNJ Options Signal Bullish Bias: Call OI Surges at $185–$190 as Puts Clot at $170–$180—Trade Setup for 1.5% Upside Breakout

• Johnson & Johnson (JNJ) surges 1.16% to $183.73, outpacing 30D support at $178.04 and 200D support at $154.72.
• Options data reveals 2352 open interest at $185 call (Friday expiry) and 843 puts at $170, signaling a 0.77 put/call ratio favoring bullish positioning.
• MACD (1.20) and RSI (61.03) confirm short-term momentum, while FDA approvals for TREMFYA and INLEXZO bolster long-term fundamentals.

Johnson & Johnson’s stock is poised for a breakout as technical indicators, options positioning, and recent regulatory wins align for a bullish narrative. The stock’s 1.16% intraday gain to $183.73—above both 30D and 200D support levels—coincides with a surge in call open interest at key strike prices. This confluence of factors suggests a high-probability trade setup for near-term upside, though biosimilar risks and South African pricing scrutiny warrant caution.

Bullish Call OI Clusters Signal Institutional Conviction at $185–$190

The options chain reveals a stark imbalance: 2352 open interest at the $185 call (Friday expiry) and 860 at $187.50 (next Friday expiry), compared to 843 puts at $170 and 814 at $180. This 0.77 put/call ratio (based on open interest) indicates institutional buyers are aggressively hedging against downside while positioning for a $185–$190 price target. The absence of block trades suggests retail and institutional flows are aligned, with no whale activity distorting the data.

The $185 call (OI: 2352) is particularly telling. At Friday’s expiry, this strike represents a 0.8% buffer above the current price, implying market participants expect a short-term breakout. Meanwhile, the $190 call (OI: 362) and $195 call (OI: 2) suggest longer-term bullishness, though liquidity is thin beyond $190. On the put side, the $170 strike (OI: 843) acts as a critical floor; a close below $173.99 (lower Bollinger Band) could trigger a wave of put sellers, creating a self-fulfilling support level.

FDA Approvals and Biosimilar Risks: A Tale of Two Narratives

Recent news flow is a mixed bag. The FDA’s approval of TREMFYA for pediatric psoriasis and INLEXZO for bladder cancer strengthens JNJ’s autoimmune and oncology pipelines, validating its R&D prowess. The $2 billion U.S. manufacturing expansion further insulates the stock from geopolitical risks, particularly Trump-era drug tariffs. These developments align with the bullish options data, as investors bet on JNJ’s ability to maintain pricing power in high-margin therapeutic areas.

However, biosimilar competition for Stelara in 2025 and South Africa’s pricing investigation pose headwinds. While Q3 2025 earnings beat estimates ($2.42/share vs. $2.21), MedTech sales fell short due to Asia-Pacific challenges. The Kenvue spin-off, though expected to stabilize the portfolio, lacks the growth potential of JNJ’s core pharma and MedTech segments. These risks could pressure the stock if the $170–$180 put-heavy zone is breached, creating a divergence between options sentiment and fundamentals.

Actionable Trade Ideas: Calls at $185–$190 and Puts at $170–$180

For options traders, the $185 call (Friday expiry) and $190 call (next Friday expiry) offer the most compelling setups. The $185 call, with 2352 open interest, is a high-liquidity strike that could see rapid price discovery if JNJ closes above $184.08 (intraday high). A $183.73 entry with a $185.00 stop and $190.00 target offers a 3.4% potential return in two days. For longer-term positioning, the $190 call (next Friday expiry) provides leverage if the stock breaks out of its $178.04–$184.08 range.

Stock traders should consider entry near $181.07 (intraday low) with a stop at $178.04 (30D support). A close above $184.08 could trigger a test of the $187.50 resistance (middle Bollinger Band at $177.43 + 10.07). For downside protection, a put spread at $170 and $180 could hedge against a 4.5% pullback, given the 843 open interest at $170.

Volatility on the Horizon: Balancing Bullish Momentum and Regulatory Risks

The coming weeks will test JNJ’s ability to sustain its bullish momentum. While the options market is pricing in a $185–$190 breakout, biosimilar competition for Stelara and South African pricing pressures could create volatility. Traders should monitor the $170–$180 put-heavy zone for signs of capitulation or a rebound. A close above $187.50 (next Friday’s top call strike) would validate the bullish case, while a drop below $173.99 (lower Bollinger Band) could trigger a reevaluation of the stock’s long-term prospects. For now, the technicals and options data suggest a high-conviction trade toward $190, with risk management anchored at key support/resistance levels.