Roll Results - Big Lots
Uh Oh...Johnson & Johnson (JNJ)! Hello Smart Option Sellers! The big news of the day so far is a bombshell report about JNJ. The report claims JNJ knew for decades that there were trace amounts of asbestos in their flagship baby powder products. Uh no! Not the beloved baby powder! I mean, c'mon. Who hasn't used that product at some point in their lives, whether it was on their own child, a grandchild, or even for yourself. It's too bad if the story is true, although I'm reading other stories that claim that this is old news and shouldn't be affecting the stock. Oh, and if you haven't been watching the stock market, JNJ is down HUGE today, off $16 per share. That's the biggest point drop for the stock in a very long time. It currently trades at $132 per share. I think what's scaring people the most today is the velocity of the drop. But it hasn't even reached the low for 2018 which was hit back in May when it touched $119 per share. Now, the intensity and severity of the drop has certainly made for great put-selling opportunities today. One week expiration (one week!) put-sell trades that expire next Friday December 21, have been available for strike prices $40 to $50 out-of-the-money. That's crazy for a stalwart like JNJ. I don't have any official recommendation today, but I just wanted to bring it to everyone's attention. I love JNJ as a stock, and have always wanted to get us into a put-sell position, but the stock is out of our price range. We like to stick with stocks as close to $50 per share and under. Now, if you want to take a closer look at the stock for yourself, please proceed with caution. I do not know how this new report will play out going forward, and there could be more downside to come. But if you do your due diligence and research, and still feel the risk is worth it, then you can decide if a put-sell trade is warranted. My goal today is just to alert you of the current situation. That's all for now. There will be no Friday Q&A as I haven't received any new questions. Continue to hold all other open positions as-is. Contact me here with fills, comments, questions or concerns. Regards,
Lee Let's Grab That Cash!