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

• JNJ trades at $210.07, up 0.37% with volume surging past 2.99M shares
• Options data shows heavy call open interest at $212.5 and $215 strikes expiring Dec 19
• Analysts at BMO and Citigroup raised price targets to $227–$232, citing strong fundamentals

Here’s the thing: JNJ’s options market is whispering bullishness louder than its technicals. With call open interest outpacing puts and analysts raising targets, this stock is primed for a move—but timing matters.

Bullish Sentiment Locked in OTM Strikes

Let’s start with the options chain. This Friday’s expiring calls show heavy concentration at $212.5 (OI: 2,472) and $215 (OI: 2,283), while puts are stacked at deep out-of-the-money levels like $190 (OI: 3,224). The put/call ratio for open interest is 0.97, meaning calls edge out puts by a hair. This isn’t just noise—smart money is hedging for a rally.

The next Friday expiration (Dec 26) tells a similar story, with calls at $212.5 (OI: 850) and $215 (OI: 491) gaining traction. No major block trades to distort the data, so we’re looking at organic accumulation. The risk? If JNJ stumbles below its 30-day moving average ($200.81), those bullish bets could unravel fast.

Analyst Upgrades Fuel the Fire

BMO, Citigroup, and Guggenheim aren’t just throwing darts. Their upgraded price targets ($227–$232) align with JNJ’s technical resistance levels. The 2.5% dividend yield (annualized) also sweetens the deal for income-focused investors. Think about it: a stock with a 50% payout ratio and a history of dividend growth? That’s a magnet for long-term buyers.

But here’s the catch: the RSI at 54.74 isn’t screaming overbought yet. If earnings or guidance miss expectations, the $205–$208 range (Bollinger Band middle at $205.52) could become a battleground. The market’s betting on a smooth ride, but don’t ignore the exits.

Actionable Trade Setups

For options traders: JNJ20251219C21250 (Dec 19 $212.5 call) is a prime candidate. With 2,472 contracts in open interest, this strike acts as a liquidity magnet. If JNJ breaks above its intraday high of $210.6, the $212.5 call could see explosive volume. For a longer play, JNJ20251226C215 (Dec 26 $215 call) offers leverage if the bulls hold their ground.

Stock traders: Consider entries near $208.50 (intraday low + 0.5% buffer). A close above $212.5 would validate the call buyers’ thesis, with price targets aiming for $215–$217.5. For downside protection, a put spread at JNJ20251219P205 (Dec 19 $205 put) + JNJ20251219P200 (Dec 19 $200 put) could hedge a long position without breaking the bank.

Volatility on the Horizon

JNJ isn’t just a slow-burn story. The convergence of analyst upgrades, bullish options flow, and a dividend yield that outpaces the 10-year Treasury? That’s a recipe for momentum. But remember: Bollinger Bands show the upper limit at $213.07. If JNJ pierces that, watch for a retest of the $215–$217.5 range. The 200-day moving average ($171.78) is a distant floor, but near-term support at $200.81 is the real wildcard.

Bottom line: This week’s options activity and analyst chatter paint a clear picture. JNJ is set up for a bullish breakout—if the fundamentals hold. Play it with precision, and keep an eye on those $212.5 and $215 strikes. They’re not just numbers; they’re the market’s best guess at where Johnson & Johnson’s next chapter begins.