JNJ stock has bearish technical momentum targeting 245; however, the trade thesis was abandoned due to unfavorable options metrics (high IV, low delta, bullish put/call ratio).

Okay, guys. Today, I have a great setup on Johnson & Johnson. The code is JNJ. Okay, guys. With Johnson & Johnson in the picture, I want you to focus on this particular part. It has been experiencing selling pressure over the past four days, with a slight rebound today during daily trading, turning green, but it is heading downwards.

So, based on that, I have a few...I have three support levels that I am currently monitoring. I will explain each one of them, so that you understand why I chose them, and learn how to do it yourselves.

First, I'm going to start with this big, clear white trend line, okay? We're starting from this low pivot point here, from May 2026. Okay . However, we are heading upwards . Look, I'm going through the price action here, because the price is falling in that direction .

It bounces once as support. Then it breaks down to something less than that. But he does not confirm this fracture. And we continue to rise. And now it functions as a kind of polarity.

It is shifting from support to resistance. Here, there is resistance. And now we are rebounding from it.

While we continue to monitor and see this level acting as support here , we have not yet tested the trend line. Buyers saw this trend line and stepped in before the trend line was tested .

We continued to rise and now we are bouncing off it again . This is in May 2026. Sorry, the trend line started in April 2025, not 2026. I apologize for that mistake. As we continue to rise with it acting as support here, the next test, if it happens this week with a drop to this white level, will be around 245 in Johnson & Johnson.

And now, however, I am also looking at this pivot point here. This is at a level of 246.35. I am not choosing this peak here because the price may have already bounced off it today.

So, I'm not chasing the price. I will wait and see if Johnson & Johnson continues to fall to our level.

Okay, so why did you choose this level? Okay, look here, guys. Look at all these tails at this level. This is all a rejection of the price. Buyers are pushing the price towards this level, and sellers continue to resist it.

As the tails grow longer, buyers are unable to climb back up. As you approach this level, you will see three tails here. The tails are the lower part of the candles. Again, the tails at this level reinforce my confidence and give me the strength that this level will hold.

Finally, these are two settings. Third, there is a gap in the chart here at approximately 244.60. Now, the price movement in this green candle has approached it, but technically there is still an unfilled gap, a rather small gap.

So, in this sector, we have Johnson & Johnson stock trending downwards. I think it has more room to fall, and based on that, my target is around 244 to 246. Let's say 245.

In the case of the "put" option, the price of Johnson & Johnson stock is now 254. If we choose an execution price of 245 now, at this exact moment, are we outside the profit range or inside it?

We are outside of it. Tabi shakes her head. She says we're out of range. Why are we out of range, Tabby? Because we are about ten dollars away from our execution price . correct.

Yes. So, 245 will technically be the strike price, and we are outside the price range because we have n't reached it yet.

If this were a buy option and the execution price was 245, then yes , we would be within the range. But since it's a bearish sell option, we're out of range until we break above 245.

Okay guys, I'm looking for a put option on Johnson & Johnson stock right now. The base stock is at 254, and I'm looking forward to seeing if we can reach 245. Okay? That's sort of my goal now.

As I said , I don't want to jump on the bandwagon now and chase it, so I want to see if the series provides me with a good setup, as not every trading setup will translate to the options series.

Now, however, if I move to the execution price of 245, I will change it here just so I can see the "bot" options and not the "call" ones, because there are already enough metrics here.

So right now, these contracts are, if we look at this, we have a bid at 152 and a ask at 166. So, the average price is around 160. Our delta... oh, a very important point. So, however, our delta is -0.2 if we choose an execution price of 245.

Wait, one moment. So why, Tabby, is my delta negative here? Because we want the price to go down, as it is trending downwards.

Some open interest is here, which is outstanding contracts, and some trading volume that came in today. Therefore, I prefer to have more time to complete my thesis. I like to target a period of 30 to 45 days in swing trades on options.

Ten days is so short ...time is already passing very quickly. No, I need more time for things to become clear. Okay . So, I'll take a look at the November 20th series. And yet here, we don't even get an execution price at 245.

We have to choose between 250, oh. Which has a negative delta of 0.379, and a price of 240, which has a negative delta of 0.221.

Therefore, with this, our goal no longer actually exists. So , we will have to change our thesis and say, " Okay, we can change it to 250." Um, I don't like forcing things to make my thesis come true. I'll check again.

Or so, however, we are looking at the date of December 18th. This means there are 73 days left until the expiry date. However, we will go to 240, but the delta is still not at the level I want. no.

I am looking at the trading volume of buy and sell contracts today. This is a measure we will learn later. What that roughly means right now at 0.58 is that it's currently an optimistic reading.

So, there are two things already working against me . I am looking at implied volatility, which roughly measures whether these bonuses will be expensive or cheap. And now we are at the eightieth century.

Therefore, these bonuses will be more expensive. I will have to pay an additional amount for this step.

So, Tabi, we need to change our goal. Yes. These bonuses are expensive. Yes. We have an optimistic buy-sell ratio working against us. These are three factors that are not working in our favor.

Here we realize that not all trading settings will translate into a series of options. You can certainly choose a different execution price where you can actually start within the range, but you will have to pay more for it .

But with this setup here, we had an original thesis that did not translate into the series. That's why, Tabby, I'm going to ignore setting up trading today. This is acceptable.

We act like smart traders. That's true. Sometimes things don't translate into the chain, and we will save our capital for better preparation and use it then.

Yes, and look at that wonderful drawing of our final decision there. Ignore Johnson & Johnson because everything was against our thesis. What do you think of this, Jake? Let's take a look at our graph level.

We were looking at that level at 245. We were looking for sell options on it , but it lacked "delta" in the 45 and 73 day periods. The two values were very low, and the percentile for implied volatility was at 81%, which means the premium would be very expensive, which is also not what we want.

The trading volume of put- to-call options is 0.45, indicating that the public is betting on an upward trend . Therefore, it's not a smart deal for us. That's why we avoid it.