On CNBC's Options Action, Dan Nathan spoke about an options trading strategy in Johnson & Johnson JNJ. He thinks the rally in the stock is not sustainable and he wants to make a bearish bet.
Nathan said that Johnson & Johnson is trading at its resistance from November and he is concerned about the impact of strong dollar on its revenues. He added that the repatriation tax reform is very important for the company.
To make a bearish bet, Nathan wants to buy the April 120 put for $1.50. The trade breaks even at $118.50 or approximately 3.50 percent from the closing price on Friday.
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