Johnson & Johnson is back near highs, but a large put purchase tops its option actvity today.
JNJ is up 1.07 percent to $69.18 after climbing to a three-year intraday high of $69.75 on Wednesday. Shares of the health-care products giant have been in bull mode since hitting their 2012 lows and support around $62 in early June.
optionMONSTER's systems show that a trader bought 5,000 September 60 puts for $0.05, dwarfing the previous open interest of just 121 contracts and therefore a new position. This put buying is well out of the money .
The stock was below $60 on only one day at its 52-week lows but was under $50 back at the 2009 trough. The delta of the options is just -0.01, suggesting that there is probability of only 1 percent that the stock will be below the $60 strike price at expiration in six weeks. The position is strikingly similar to opened exactly a month ago in the August contracts and may well have been done by the same trader.
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