Johnson & Johnson (JNJ) Offering Possible 9.65% Return Over the Next 15 Calendar Days

Johnson & Johnson's most recent trend suggests a bearish bias. One trading opportunity on Johnson & Johnson is a Bear Call Spread using a strike $107.00 short call and a strike $112.00 long call offers a potential 9.65% return on risk over the next 15 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $107.00 by expiration. The full premium credit of $0.44 would be kept by the premium seller. The risk of $4.56 would be incurred if the stock rose above the $112.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Johnson & Johnson is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Johnson & Johnson is bearish.

The RSI indicator is at 51.84 level which suggests that the stock is neither overbought nor oversold at this time.

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

LATEST NEWS for Johnson & Johnson

Health Care, Tech Names Offer Dividend Growth, Stability
Fri, 03 Oct 2014 22:29:00 GMT

CDC tracking contacts to Texas Ebola patient
Fri, 03 Oct 2014 11:03:00 GMT

JOHNSON & JOHNSON Files SEC form 8-K, Other Events, Financial Statements and Exhibits
Thu, 02 Oct 2014 21:01:14 GMT

How do you compare the Dow Jones Industrial Average (DJIA) and the Toronto Stock Exchange (TSX)?
Thu, 02 Oct 2014 20:34:00 GMT

US stocks sink on economic, Ebola worries
Wed, 01 Oct 2014 20:50:40 GMT

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