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Mike Khouw Saw Unusual Options Activity In Johnson & Johnson Ahead Of Earnings


On CNBC's "Options Action," Mike Khouw spoke about high options activity in Johnson & Johnson (NYSE: JNJ) ahead of the earnings report, scheduled for Tuesday morning.

He said that the options market is implying a move of 5%, which is much bigger than 2.3% that it normally averages. The options volume was also above average on Monday.

The most active options were the April $145 calls, expiring this Friday, said Khouw. They were trading for $1, which sets the break even for the trade at $146 or 4.46% above the closing price on Monday.

On Tuesday morning, Johnson & Johnson reported quarterly earnings of $2.30 per share, which beat the analyst consensus estimate of $1.99. The company reported quarterly sales of $20.691 billion, which beat the analyst consensus estimate of $19.44 billion.

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