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Kevin Kelly's Johnson & Johnson Trade


Kevin Kelly of Recon Capital Partners suggested on Bloomberg Markets that viewers should consider a bullish options strategy in Johnson & Johnson (NYSE: JNJ).

He thinks it would be a good idea to sell the January 115 put for $2.70 and buy the January 120 call for $2.35. If the stock trades between $115 and $120, Kelly is going to make $0.35 and if it trades below $115 he would have to buy the stock and it would cost him $114.65. Above $120, he would make money on the call option and he would lose money if Johnson & Johnson trades below $114.65 at the January expiration.

The company is going to report earnings on October 18 and Kelly thinks it is going to beat expectations.

Posted-In: Bloomberg Markets Kevin KellyOptions Markets Media


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