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JNJ Covered Call Analysis: Proceed With Caution Weak · 43/100
JNJ · $238.46 ·
Analysis generated Apr 13, 2026 ·
Data as of market close Apr 13
This strategy is NOT recommended for JNJ right now
Score 43/100. The technical signals do not support selling covered calls on JNJ at this time.
IV -49% vs avg — premiums below average, less income. MACD bearish — stock may keep falling (risk). TTM Squeeze ON — breakout imminent, risky for capped strategies.
Check back when conditions improve, or consider a different strategy.
Quick Take
JNJ is trading at $238.46 with RSI at 55 (neutral territory). Options IV is at 24% — 49% below its 30-day average of 47%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
55
IV Today
24.1%
IV vs 30d Avg
-49%
MACD
bearish
ADX
16
MFI
50
The Setup
JNJ Covered Call
LONG STOCK
100 shares @ $238.46
SHORT CALL
$260 Jun '26 · $2.54/sh
Net Cost
$23,592
Max Profit
+$2,408
Break-even
$235.92
Projected P&L at Target
+$2,408
(10.2%)
P&L at Expiry
P&L Scenarios
What happens at different JNJ prices by expiry:
| JNJ Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $191 (-20%) | -$4,517 | -$4,515 | -$4,515 | -$4,515 |
| $203 (-15%) | -$3,333 | -$3,325 | -$3,323 | -$3,323 |
| $215 (-10%) | -$2,174 | -$2,143 | -$2,131 | -$2,131 |
| $227 (-5%) | -$1,077 | -$997 | -$946 | -$938 |
| $234 (-2%) | -$473 | -$353 | -$253 | -$223 |
| $238 (0%) ← now | -$100 | +$48 | +$190 | +$254 |
| $243 (+2%) | +$244 | +$420 | +$607 | +$731 |
| $250 (+5%) | +$702 | +$912 | +$1,161 | +$1,446 |
| $260 (+9%) ← target | +$1,200 | +$1,433 | +$1,726 | +$2,408 |
| $274 (+15%) | +$1,701 | +$1,919 | +$2,168 | +$2,408 |
| $286 (+20%) | +$1,944 | +$2,121 | +$2,293 | +$2,408 |
Why This Strategy, Why Now
- RSI at 55 — neutral-bullish
- IV -49% vs avg — premiums below average, less income
- MACD bearish — stock may keep falling (risk)
- ADX at 16 — range-bound, perfect for selling calls
- TTM Squeeze ON — breakout imminent, risky for capped strategies
Key Risks
TTM Squeeze is ON — a volatility breakout may be imminent. If the breakout is to the upside, your short call will be tested quickly.