Johnson & Johnson's most recent trend suggests a bullish bias. One trading opportunity on Johnson & Johnson is a Bull Put Spread using a strike $126.00 short put and a strike $121.00 long put offers a potential 10.13% return on risk over the next 4 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $126.00 by expiration. The full premium credit of $0.46 would be kept by the premium seller. The risk of $4.54 would be incurred if the stock dropped below the $121.00 long put strike price.
The 5-day moving average is moving up which suggests that the short-term momentum for Johnson & Johnson is bullish and the probability of a rise in share price is higher if the stock starts trending.
The 20-day moving average is moving up which suggests that the medium-term momentum for Johnson & Johnson is bullish.
The RSI indicator is above 80 which suggests that the stock is in overbought territory.
To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here
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