September 2026 Options Now Available For Johnson & Johnson (JNJ)

Analysis of Johnson & Johnson (JNJ) options contracts reveals potential strategies for investors seeking enhanced yield. Selling a $150 put offers an 8.10% return on cash commitment (6.12% annualized) with a 62% chance of expiring worthless, while a covered call strategy at $155 strike could yield 9.68% if the stock is called away by the September 2026 expiration. Stock Options Channel will track the odds of these contracts expiring worthless over time.

Analysis

The article outlines two options strategies for Johnson & Johnson (JNJ), currently trading at $152.85 per share, aimed at enhancing yield or acquiring shares at a more favorable price. Selling a $150 strike put contract, with a bid of $12.15, offers an investor the potential to acquire JNJ shares at an effective cost basis of $137.85, a discount to the current market price, should the option be exercised. Alternatively, if this put, which is approximately 2% out-of-the-money, expires worthless (an event with a stated 62% probability), the seller retains the premium, realizing an 8.10% return on the cash commitment, or 6.12% annualized. For existing JNJ shareholders, selling a $155 strike covered call, with a bid of $12.65 and a September 2026 expiration, could generate a total return of 9.68% (excluding dividends) if the stock is called away. This strategy involves capping potential upside above $155. If this call, approximately 1% out-of-the-money, expires worthless (a 44% probability), the investor keeps the shares and the premium, representing an 8.28% boost to return, or 6.25% annualized. The implied volatility for the put contract is 24%, while the call contract's implied volatility is 19%, the latter aligning with JNJ's actual trailing twelve-month historical volatility of 19%.

Key Decisions for Investors

• Investors interested in acquiring JNJ shares at a discount to the current market price could consider selling the $150 strike put, targeting an effective cost basis of $137.85 or an 8.10% unannualized yield (6.12% annualized) if the option expires worthless.
• Existing JNJ shareholders seeking to generate additional income might evaluate selling the $155 strike covered call with a September 2026 expiration, which could yield a 9.68% total return if called away or an 8.28% unannualized premium (6.25% annualized) if it expires worthless, understanding this caps upside potential above $155.
• The higher implied volatility of 24% on the $150 put, compared to the stock's 19% historical volatility and the 19% implied volatility on the $155 call, may indicate a relatively more attractive premium for sellers of these puts.