JNJ Options Signal Bullish Momentum: Key Strike Levels and Trade Setups for Q4 Gains

• Options activity shows heavy call open interest at $200 and $210 strikes for next Friday’s expiration.
• Technical indicators confirm a short-term bullish trend with JNJ near its 30-day moving average.
• Recent FDA approvals and MedTech growth position JNJ for sustained outperformance in 2025.

Here’s the core insight: JNJ’s options market is pricing in a strong upside bias, with call buyers dominating at key resistance levels. The stock’s technical setup and news flow align with this bullish narrative, but traders should watch for short-term volatility around the $195.37 intraday high. Let’s break down what this means for your strategy.

Bullish Sentiment Locked in OTM Options

The options chain tells a clear story. For next Friday’s expiration, call open interest spikes at the $200 strike (OI: 5,492) and the $210 strike (OI: 1,099), while puts dominate at the $180 strike (OI: 2,839) and the $170 strike (OI: 2,798). This isn’t just noise—it’s a signal. Call buyers are betting JNJ will clear $200, while put buyers are hedging against a drop below $180. The put/call ratio of 0.7598 (favoring calls) reinforces the idea that the market expects a higher close by year-end.

But here’s the catch: the $200 strike isn’t just a target—it’s a psychological barrier. If JNJ breaks above its intraday high of $195.37, the $200 level becomes a self-fulfilling prophecy for many call holders. Conversely, a close below $184.14 (lower Bollinger Band) could trigger panic selling, especially with the $180 put OI acting as a liquidity magnet.

Company News Fuels the Bull Case

JNJ’s recent headlines are a goldmine for bullish traders. The FDA approvals for oncology and neuropsychiatry therapies, combined with a 5.6% MedTech sales growth, show the company is hitting its stride. Analysts aren’t just rating it a “buy”—they’re calling it a decades-long income play. This isn’t a short-term pop; it’s a structural shift in how J&J is valued.

But let’s not ignore the risks. The pulmonary arterial hypertension market is competitive, and AbbVie’s psoriatic arthritis drugs are closing in. Still, J&J’s focus on personalized treatments (like for depression and bladder cancer) gives it an edge. Investors are betting on innovation, not just stability.

Actionable Trade Setups for Q4

For options traders, the most compelling play is the $200 call option expiring next Friday. Here’s why: JNJ is currently trading at $195.06, just $5 away from the strike. If the stock breaks above $195.37 (Bollinger upper band) and holds, this call could see exponential gains. The RSI at 52.05 suggests it’s not overbought yet, giving it room to run. Entry: $195.06. Target: $200. Stop-loss: $193.11 (intraday low).

For stock traders, consider a buy near $193.11 if the support holds. The 30-day moving average at $189.52 acts as a floor, and the 200-day MA at $166.19 is a distant anchor. A breakout above $195.37 could push JNJ toward $197.50 (next call-heavy strike) and eventually $200. Exit targets: $197.50 (short-term) or $205 (longer-term, aligning with the $205 call OI).

Bullish Trends Ahead: Volatility as Your Friend

The next two weeks will be critical. If JNJ holds above $193.11 and closes above $195.37 by Friday, the $200 call options could become a hot setup. But don’t ignore the puts—while the market is bullish, the $180 strike has enough OI to act as a safety net if the stock stumbles. This isn’t a one-way bet; it’s a balanced play where volatility works for you.

In the long term, J&J’s 34.6% YTD surge isn’t just luck. The company’s pipeline of FDA-approved therapies and MedTech innovation is creating a flywheel effect. For traders, this means holding positions through short-term noise and focusing on the $200–$205 range as a key battleground. The options market is already pricing in this outcome—now it’s up to the stock to deliver.