JNJJohnson & Johnson
Options Analysis Report•PHARMACEUTICAL PREPARATIONS
Market Cap $555.6B|NYSE
● 2026-05-15$230.80
NEUTRAL
Analysis: 2026-05-14 EOD data
1Y +54.3%YTD +11.3%7D +4.3%
Options Vol
21,840
30D
Implied Move
±6.5%
IV Rank
47%
JNJ Options Overview
IV is low. Conditions favor option buyers.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
7.7
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks7/9 checks passed
IV Rank
≤35%IV Rank 6.6% — cheap vs history
IV/HV Ratio
<1.05xIV/HV 1.19x — IV premium over HV
Sector Relative≤50%
Sector percentile 2% — below sector median
Term Structure
<1.1xFront/Back 0.99x — contango
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 23.4% — normal range
Spread-Adjusted Value
<80%Effective IV 40.2% (ATM 23.4% + spread 8.4% + bias) — excellent value
Execution Efficiency
<3.0%Total drag 14.08% (spread 8.38% + slippage 5.70%) — high friction
Vega Efficiency
≥5.0Vega efficiency 37.29 (vega 31.249 / spread 8.38%) — efficient
Sentiment
Bullish or bearish?
6.1
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksBullish - Moderate signal (Conviction: +10%, Raw: +7%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: +10% (bullish) — Raw: +7%
OI Skew Magnitude
≥15%|OI skew| 11.8% — balanced
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew +13.1%, OI skew +11.8% — aligned
Conviction Quality
≥2/3 conditions0-DTE 27%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: +18%, ATM: -15%, OTM: +20% — neutral (ITM/ATM divergent)
Sector Relative≤40% or ≥60%
Sector P/C percentile 53% — neutral vs sector
Activity
Unusual activity?
4.6
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks1/9 checks passed
Volume Surge
≥1.5xVolume 1.1x avg — normal
Turnover Rate
≥15%Vol/OI 6.0% — normal turnover
Strike Concentration
≥60%Top 3 strikes = 50% — dispersed
Multi-Day Persistence
≥2 days1 day(s) elevated — may be one-day event
OI Build
≥5%OI change +4.6% (5d) — building
Sector Relative≥60%
Sector activity percentile 71% — active vs sector
Trade Quality
≥30%Large trade volume 29% — mixed
Execution Urgency
≥60%Aggressive execution 27% — patient
Flow Conviction
≥30Conviction +10 (bullish) — mixed
Liquidity
Can I trade efficiently?
5.2
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks5/8 checks passed
Tradeable Spread
≤5.0%Spread 8.4% — wide
Adequate OI
≥10,000OI 363,602 — deep
Active Volume
≥500Volume 21,840/day — active
Reasonable Cost
≤$0.50$0.42 to cross — cheap
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 5% — much tighter than sector
Order Book Depth
≥100 contractsDepth 210.0 contracts (bid:77.9 ask:132.1) — adequate
Execution Quality
<1.0%Avg slippage 5.70% — poor
Timing
Is now a good time?
6.6
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks6/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope -0.8% — flat/unclear
IV Percentile Clarity
<30 or >70IV percentile 7% — buyer opportunity
Event Detection
≥10pts kinkIV kink 0.6pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 383.43 — favors income trades
Expiration Distribution
≥3 expirations5 liquid expirations — flexible
Event Risk
≥60% (safe)safe window: No events detected
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow +10% @ 55% consistency — unclear
Smart Money Timing
≥40 composite scoreScore 59 (ITM 20% + inst 29%) — moderate institutional
Directional Strategy Fit
Option Buyers
Long Calls6.6
bullishIV cheap, bullish flow
Long Puts5.8
bearishIV cheap, bullish flow
Premium Sellers
Cash-Secured Put4.9
bullishIV too cheap, bullish flow
Covered Call4.1
bearishIV too cheap, bullish flow
For educational purposes only. Not investment advice.