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

• JNJ trades at $208.35, down 0.94% from $210.33, but technicals show short- and long-term bullish trends.
• Call open interest dominates at $210–$212.5 strikes (this Friday’s expiry), while puts cluster at $190–$175.
• FDA approvals for J&J’s MedTech and oncology products hint at long-term growth, but near-term volatility looms ahead of earnings.
• The put/call open interest ratio is nearly balanced (0.97), but heavy call buying suggests conviction in a rebound.

What the Options Chain Reveals About Market Sentiment

Let’s start with the numbers: JNJ’s options market is buzzing with bullish energy. This Friday’s expiry sees the most open interest in call options at $210 (OI: 3,991) and $212.5 (OI: 2,395), strikes just above today’s price. That’s not accidental—it’s a crowd-sourced bet that JNJ will reclaim its $210 level by Friday. Meanwhile, puts at $190 (OI: 3,226) and $175 (OI: 2,972) suggest some hedging against a deeper pullback, but the volume is lighter. The near-even put/call ratio (0.97) tells me the market isn’t screaming for a directional move, but the skew toward calls implies a bias for upward momentum. Think of it like a tug-of-war where the bulls have a slight grip on the rope.

How FDA Approvals and Earnings Could Shape the Narrative

J&J’s recent FDA wins—like TRUFILL n-BCA for cSDH and AKEEGA for prostate cancer—aren’t just regulatory checkboxes. They’re real-world growth drivers that could boost investor confidence. These approvals address high-unmet-need markets, which often translate to durable revenue streams. But here’s the catch: the stock’s near-term direction hinges on whether the market prices in these wins today or waits for Q4 earnings in January. The options data leans toward the former—traders are already baking in optimism about J&J’s pipeline, which could fuel a rebound before the January call.

Actionable Trade Ideas for JNJ: Calls, Puts, and Price Levels

If you’re bullish, the JNJ20251219C2125 call option (expiring Friday) is your best bet. With $212.5 just 2% above the current price and heavy open interest, this strike offers leverage if JNJ breaks above its 20-day EMA ($206.03). For a longer-term play, the JNJ20251226C215 (next Friday’s expiry) could capitalize on a post-earnings rally. On the downside, consider a bear put spread: buy the JNJ20251226P205 and sell the JNJ20251226P1975 to cap risk while hedging against a drop below the 30-day support ($199.52). For stock traders, a buy near $200.08 (upper 30-day support) with a target at the Bollinger Upper Band ($213.41) makes sense if the RSI (55) holds above 50.

Volatility on the Horizon: What to Watch Next

JNJ isn’t in a vacuum. The FDA approvals are table stakes; the real fireworks come in January when Q4 results drop. Until then, the stock could oscillate between $207–$213, with options expiries acting as catalysts. If the price holds above $206 (middle Bollinger Band), the bullish case strengthens. But don’t ignore the puts at $190—they hint at a worst-case scenario where JNJ dips toward the 200-day support ($154.50). For now, the data says: play the rebound, but keep a seatbelt on.