Johnson & Johnson (JNJ)

Jan 29, 2021Trade Ideas

At some point, Johnson & Johnson will be a “blood in the streets” opportunity.

For the time being, though, it’s a better short.

All after the company said its one-dose vaccine saw 66% overall effectiveness in protecting against COVID. It was 72% effective in the U.S., 66% effective in Latin America, and 57% effective in South Africa. However, the vaccine did offer complete protection against COVID hospitalizations, as noted by CNBC.

Still, the news was disappointing. After falling from a high of $173.65 to $161.40, JNJ could fall to test support around $157.50 next. If that fails, next support is its 50-day moving average around $154.50.

At the moment, one of the best ways to trade potential downside here is with the JNJ February 19, 2021 157.50 puts. You can hedge with the JNJ February 19, 2021 162.60 calls.

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