JNJ Options Signal Bullish Bias: Key Strike Levels and Trade Setups for Dec 5 Expiry

• JNJ trades at $202.66, down 1.3% from its 52-week high of $205.33
• RSI at 85.15 hints overbought conditions, while Bollinger Bands show price near the middle band
• Options data reveals heavy call open interest at $207.5 and $205 strikes, with a 0.97 put/call ratio favoring bullish positioning

Here’s what’s happening: JNJ’s price dip today masks a strong bullish undercurrent in options and fundamentals. The stock is testing key support levels while institutional buyers and analysts are piling in—this feels like a setup where the market is hedging for a rebound. Let’s break it down.

Where the Money Is Flowing: Calls at $207.5, Puts at $200

JNJ’s options chain tells a clear story. For Friday’s expiry, the top call open interest is at $207.5 (OI: 1,656) and $205 (OI: 676), while puts peak at $200 (OI: 1,025) and $202.5 (OI: 708). This isn’t random—call buyers are betting on a rebound above $205, while puts at $200 act as a safety net if the dip continues. The 0.97 put/call ratio (calls slightly ahead) suggests a net bullish bias, but don’t ignore the $200 put wall: if the stock breaks below $201.74 (today’s low), that level could become a battleground. No block trades to worry about, so this is retail and institutional money flowing naturally.

News That Could Tip the Scales

JNJ’s recent headlines are a mixed bag. The EU approval for Imaavy and Guggenheim’s “Buy” rating (with a $206 target) scream optimism, especially for long-term holders. But today’s price drop—despite Barclays raising its target to $197—hints at profit-taking after the stock hit $203.90 last week. Here’s the kicker: the $206 price target from Guggenheim aligns with the $207.5 call strike, where options buyers are already positioned. If the stock holds above $200, this news flow could fuel a rally. If not, the $198.98 middle Bollinger Band might become a new battleground.

Trade Ideas: Calls for Short-Term Gains, Stock for the Long Haul

For options traders, the JNJ20251205C2075 call (expiring Friday) is a high-conviction play. With OI at 1,656, it’s the most liquid strike if the stock rebounds. For next week, the JNJ20251212C205 call offers a cheaper entry if the bounce is delayed. Stock buyers should consider entry near $200.98 (30D support) with a stop just below $200. Targets? $207.5 (call strike) and $214.00 (Bollinger upper band). Bearish? A put spread at $200 and $195 could work if the stock breaks below $200—JNJ20251205P200 and JNJ20251205P195.

Volatility on the Horizon

JNJ isn’t just a stock—it’s a case study in balancing risk and reward. The options data and news both point to a pivotal moment: bulls are betting on a rebound to $207.5, while bears eye $200 support. With the 200D MA at $169.84 as a long-term floor, this is a stock where patience pays off. But today’s dip is a reminder—don’t chase. Wait for a confirmed bounce above $201.74 before committing. The next 72 hours could define JNJ’s short-term direction. Stay ready.