Johnson & Johnson Offering Possible 16.01% Return Over the Next 18 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 $87.50 short call and a strike $92.50 long call offers a potential 16.01% return on risk over the next 18 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $87.50 by expiration. The full premium credit of $0.69 would be kept by the premium seller. The risk of $4.31 would be incurred if the stock rose above the $92.50 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 below 20 which suggests that the stock is in oversold 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

LATEST NEWS for Johnson & Johnson

Death of actor Philip Seymour Hoffman spotlights fentanyl scourge
Wed, 05 Feb 2014 02:13:35 GMT
Reuters – Investigators are racing to find the source of a synthetic narcotic called fentanyl that is sometimes mixed with heroin and is believed by health authorities to be responsible for scores of U.S. overdose …

Gilead Beats Q4 Estimates, But Ducks Sovaldi Guidance
Tue, 04 Feb 2014 23:51:00 GMT
Investor's Business Daily – Gilead Beats Q4 Estimates, But Ducks Sovaldi Guidance

Johnson & Johnson Fined $2bn Over Drug Claims
Tue, 04 Feb 2014 23:40:37 GMT

Corporate profit growth has best showing in a year
Tue, 04 Feb 2014 23:17:56 GMT
USA TODAY – 74% of the S&P 500 companies reporting have beat forecasts, best showing since 4Q of 2011.

New hepatitis C pill lifts Gilead's 4Q sales
Tue, 04 Feb 2014 22:16:05 GMT

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