I really don't have to say much here, as many of you that have been following the blog know I am short JNJ with conviction. We made another new high this week and closed up for the 17th straight week in a row. Call me crazy but I am sticking with my bet that this thing is going to have a down week. And I honestly feel that the higher this thing goes the harder it is going to fall. My first target is $80/share and as low as $76/share.
I had previously mentioned that I was going to roll my $85 puts out a month if I did not get the move lower I was looking for, but after watching the price action the last few days of this week. I decided to keep the May puts in place with 21 days to go until expiration.
We will see what happens next week.
Good Luck Trading!
In The Money Trades
And 1 favor that we ask:
If you like the hard work we put into our blog posts and videos, PLEASE help us out by sharing them. Click the share links below and share them on FB, twitter, etc. It really helps us get more exposure and grow IN THE MONEY TRADES!
JNJ still having a hard time going down. So today I decided with two days to go I would sell a few $85 weeklys effectively putting me in a 2:1 ratio to offset some of the theta decay. On Friday I will look to do the same thing for next weeks expiration.
ReplyDeleteCorrection: should be a 3:1 ratio.
ReplyDeleteJNJ is positioned to possibly close its 18th consecutive week higher. We will see what tomorrow brings.
Hopefully downside :)
What happened to the trend is your friend? I might have to play a weekly bull call spread just because its free money right?
ReplyDeleteIt is your friend, until it turns around and bitch slaps you...LOL.
ReplyDeleteYou should do a weekly call spread. Someone should make money in JNJ.
Its so funny how bullish I was...and now I can't help but be bearish.