Trade Ideas
UOA PRO Update JNJ 7-16
6,500 18September 270 calls bought for 2.74 to 3.40 above open interest of 1,899 contracts; 6,500 18September 280 calls sold for 1.81 to 1.38 below open interest of 9,105 contracts. Stock 248.42-250.07.
Status Update
Ticker: JNJ
Stock: 249.83
Expiration Date: 28AUG
UOA: 6,500 18September 270 calls bought for 2.74 to 3.40 above open interest of 1,899 contracts; 6,500 18September 280 calls sold for 1.81 to 1.38 below open interest of 9,105 contracts. Stock 248.42-250.07.
JNJ $249.90 Last.
Sizeable Sept. set OTM call roll down. XLV is having a good day and so is XLP and XLRE so there’s a defensive shift occuring here likely due to SMH’s weakness which seems to be holding the MAGS down as well. They had been working and thus buoying the market but for the past 2 sessions the SMH has been hit hard and so all in all the market continues to feel heavy. That may be one reason why this player wants to get more aggressive as defensive names could see the bid intensify if players want to rotate out of Tech due to feeling the risks growing. EPS is out so IF this can start to move back up, there may be a little opportunity here as the LT trend is still up.
Trigger: $253.55, today’s current high.
Strategy 1: Consider the JNJ 28Aug. 255.00-280.00 call spread for $6.45 projected at trigger level today. Uncappable. Less than ideal options book to work within.
Targets: 256.25 (15 SMA currently), 258.51, 267.24, 269.43