A long-term investor expects Johnson & Johnson to start
making new highs.
The pharmaceutical and medical-supply giant has been trapped below
$70 for most of the last decade, but yesterday optionMONSTER's
tracking systems detected the purchase of block of 7,400 January
2015 80 calls for $1.35. Open interest in the strike was just 5
contracts at the beginning of the day, so this is clearly fresh
lock in the price investors must pay for the stock, so they can
generate some nice leverage in the event of a rally. If it doesn't
climb, however, these options will expire worthless. (See our
JNJ rose 0.44 percent to $68.90. It rallied sharply in June and has
been consolidating in a range since then, holding support above its
That could be leading some chart watchers to believe that the stock
is ready to keep running for some time. The unusual thing about
yesterday's option trade was their extremely long time horizon.
Overall option volume was low for the name at just 17,129
contracts, well below the 59,000 it sees in a typical session. But
those 2015 calls really stood out, accounting for more than 40
percent of the total.
(A version of this post appeared on