Sarah Wasserman (swasserman@sir-inc.com) Johnson & Johnson (JNJ) has seen a surge in option activity today, with 22,000 contracts changing hands so far -- well above the pharmaceutical issue's expected daily option volume. Puts have been especially popular, with roughly 14,000 of these bearishly oriented options changing hands.
The November 65 put has been the day's most popular strike, with over 5,000 contracts changing hands -- 66% of which traded at the bid price, indicating they were likely sold. With JNJ currently trading around $63.98, these 65-strike puts may have been sold to close by traders collecting profits on their in-the-money positions.
Meanwhile, in JNJ's November series of options, peak put open interest can be found at the 62.50 strike, while peak call open interest resides at the 65 strike. JNJ is currently hovering in between these two popular strikes.
Option players remain mixed on JNJ, as evidenced by the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.02, which reveals that put open interest and call open interest are nearly equal among options in the front three months. This ratio ranks in the middling 47th annual percentile, pointing to a generally ambivalent attitude toward JNJ among short-term traders.
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