January 22, 2021  Terry’s Tips Trade  Alert  – Earnings Eagle Portfolio

 

JNJ  announces earnings before the open on Tuesday, January 26.  The options are pricing in a 3.9% move which compares favorably to the recent 1.9% average move after announcing:

 

BTO 2 JNJ 16Apr21 155 puts (JNJ210416P155)
STO 2 JNJ 29Jan21 155 puts (JNJ210129P155) for a debit of $4.04  (buying a calendar)

BTO 2 JNJ 16Apr21 160 puts (JNJ210416P160)
STO 2 JNJ 29Jan21 160 puts (JNJ210129P160) for a debit of $4.71  (buying a calendar)

BTO 1 JNJ 16Apr21 155 put (JNJ210416P155)
STO 1 JNJ 29Jan21 157.5 put (JNJ210129P157.5) for a debit of $3.50 (buying a diagonal)

BTO 1 JNJ 16Apr21 160 put (JNJ210416P160)
STO 1 JNJ 29Jan21 157.5 put (JNJ210129P157.5) for a debit of $5.52 (buying a diagonal)

BTO 2 JNJ 16Apr21 165 calls (JNJ210416C165)
STO 2 JNJ 29Jan21 165 calls (JNJ210129C165) for a debit of $3.98  (buying a calendar)

BTO 1 JNJ 16Apr21 165 call (JNJ210416C165)
STO 1 JNJ 29Jan21 167.5 call (JNJ210129C167.5) for a debit of $4.95 (buying a diagonal)

BTO 1 JNJ 16Apr21 170 call (JNJ210416C170)
STO 1 JNJ 29Jan21 167.5 call (JNJ210129C167.5) for a debit of $2.92 (buying a diagonal)

Be[Ta1]  prepared to change this (these) price limit(s) by $.05 or more in order to get an execution.

Happy trading.

Terry