JNJ Options Signal Bullish Momentum: Key Strike Levels and Trade Setups for Dec 19 Expiry

• JNJ trades at $214.04, up 1.16% with intraday high of $214.38
• Call open interest spikes at $215 and $220 strikes for Dec 19 expiry
• Legal verdict creates near-term risk, but BofA upgrades and oncology bets hint at resilience

The stock is perched on a tightrope right now. Technicals scream bullish momentum—RSI at 66.7, MACD above signal line—but a $40M cancer verdict looms. Options data tells a clearer story: traders are pricing in a breakout above $215, not a collapse. Let’s break down why this setup matters.Bullish Pressure at $215, But Puts Signal Caution

Options market activity is a goldmine for sentiment. For the Dec 19 expiry, JNJ20251219C215 calls have 1,875 open contracts—the highest of any strike. That’s not just noise; it’s a vote of confidence that JNJ will punch through its 52-week high of $214.38. The next level at $220 has 1,279 open calls, suggesting some see $220 as a realistic target.

But don’t ignore the puts. JNJ20251219P190 has 3,220 open contracts, the largest put position. That’s a hedge against the legal verdict’s fallout. The put/call ratio for open interest is nearly balanced at 0.985, meaning no overwhelming bearish or bullish bias—but the call concentration at $215-220 tips the scale toward upside.

Legal Headwinds vs. Strategic Wins

The ovarian cancer verdict is a short-term speed bump, not a crash. J&J’s history of overturning similar rulings (and its 2020 switch to cornstarch-based powder) softens the blow. Meanwhile, the $60M investment in Link Cell Therapies and BofA’s upgraded $220 price target reinforce long-term conviction. Analysts love the dividend profile and MedTech partnerships, but earnings growth lags—so the stock’s resilience hinges on its ability to innovate, not just distribute cash.

Trade Ideas: Calls for Breakouts, Stock for Precision Entries

For options traders: JNJ20251219C215 is the standout. If JNJ closes above $214.38 by Friday, these calls could surge. A safer play? A bull call spread using JNJ20251219C215 and JNJ20251219C220 to cap risk. For stock buyers, consider entry near $211.58 (previous close) if support holds above the 200D MA ($171.33). A breakout above $214.38 could target $217.50 (Bollinger Upper Band at $211.66 + 5.8% buffer).

Volatility on the Horizon

This week’s options expiry (Dec 19) will test JNJ’s resolve. A close above $215 could trigger a rally toward $220, but the legal appeal process and biosimilar pressures for Stelara remain wild cards. For now, the data leans bullish—but keep a stop-loss below $209.01 (intraday low) to guard against unexpected setbacks. The key takeaway? JNJ’s fundamentals are sturdy, but its options market is pricing in a breakout. Time will tell if the bulls can outlast the legal storms.