Big call selling in Johnson & Johnson

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A large trader sees limited upside in Johnson & Johnson.

The options volume in JNJ already tops the daily average riding on the back of one print in the October 95 calls. A trader sold 16,927 of those calls for the bid price of $0.87 in volume that was 4 times higher than previous open interest, so it is clearly a new position.

The options were likely tied to long stock as a covered-call position , which would be bullish up to the strike $95 strike price but not above. So the trader is looking for JNJ to make a run back up to the recent highs but not much above. (See our Education section)

JNJ is down 1.62 percent to $91.50 this morning. It hit a high of $94.42 two weeks ago. Shares of the health-care products giant bounced off support at $82 in late June.




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