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Today, we’re opening a new bullish trade on Johnson & Johnson (JNJ). The stock market continues to show signs of bullishness heading into earnings season, and we anticipate it is going to continue doing so — along with JNJ’s stock price — in the run up to the company’s earnings announcement on Tuesday, Oct. 18, before the market opens.
JNJ is a strong dividend-payer (having increased its dividend payment for 54 years in a row) and is a favorite among many large hedge funds (including Citadel Advisors and Ken Fisher’s Asset Management). The stock’s bullish break above a month-long down-trending resistance level today signals that more investors are starting to move into the stock. JNJ has been a strong performer in the run up to and following its last two earnings announcements, and we expect more of the same this quarter. We are looking for the stock to climb back up toward its recent highs around $125.
Buy to open the JNJ November 125 Calls (JNJ161118C00125000).
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