JNJJohnson & Johnson
Options Analysis Report•PHARMACEUTICAL PREPARATIONS
Market Cap $564.0B|NYSE
● 2026-04-17$234.18
NEUTRAL
Analysis: 2026-04-16 EOD data
1Y +49.2%YTD +12.9%7D -1.8%
Options Vol
26,558
30D
Implied Move
±6.5%
IV Rank
43%
JNJ Options Overview
IV is low. Conditions favor option buyers.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
7.0
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 4.2% — cheap vs history
IV/HV Ratio
<1.05xIV/HV 1.61x — IV premium over HV
Sector Relative≤50%
Sector percentile 0% — below sector median
Term Structure
<1.1xFront/Back 0.93x — contango
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 23.2% — normal range
Spread-Adjusted Value
<80%Effective IV 39.1% (ATM 23.2% + spread 8.0% + bias) — excellent value
Execution Efficiency
<3.0%Total drag 14.04% (spread 7.95% + slippage 6.09%) — high friction
Vega Efficiency
≥5.0Vega efficiency 46.04 (vega 36.603 / spread 7.95%) — efficient
Sentiment
Bullish or bearish?
5.0
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksBearish - Weak signal (Conviction: -17%, Raw: -15%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: -17% (bearish) — Raw: -15%
OI Skew Magnitude
≥15%|OI skew| 7.6% — balanced
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew +6.8%, OI skew +7.6% — weak (same direction)
Conviction Quality
≥2/3 conditions0-DTE 28%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: -11%, ATM: -12%, OTM: -17% — bearish (ITM/ATM aligned)
Sector Relative≤40% or ≥60%
Sector P/C percentile 53% — neutral vs sector
Activity
Unusual activity?
4.8
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks2/9 checks passed
Volume Surge
≥1.5xVolume 1.3x avg — normal
Turnover Rate
≥15%Vol/OI 6.8% — 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 +7.5% (5d) — building
Sector Relative≥60%
Sector activity percentile 86% — very active vs sector
Trade Quality
≥30%Large trade volume 21% — mixed
Execution Urgency
≥60%Aggressive execution 38% — patient
Flow Conviction
≥30Conviction -17 (bearish) — mixed
Liquidity
Can I trade efficiently?
5.6
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks5/8 checks passed
Tradeable Spread
≤5.0%Spread 8.0% — wide
Adequate OI
≥10,000OI 389,630 — deep
Active Volume
≥500Volume 26,558/day — active
Reasonable Cost
≤$0.50$0.40 to cross — cheap
Strike Coverage
≥5 strikes2 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 5% — much tighter than sector
Order Book Depth
≥100 contractsDepth 145.89999999999998 contracts (bid:71.1 ask:74.8) — adequate
Execution Quality
<1.0%Avg slippage 6.09% — poor
Timing
Is now a good time?
7.6
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks7/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope -6.8% — contango
IV Percentile Clarity
<30 or >70IV percentile 4% — buyer opportunity
Event Detection
≥10pts kinkIV kink -0.6pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 496.65 — 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 -17% @ 59% consistency — unclear
Smart Money Timing
≥40 composite scoreScore 51 (ITM 20% + inst 21%) — moderate institutional
Directional Strategy Fit
Option Buyers
Long Calls6.2
bullishIV cheap, mixed flow
Long Puts6.2
bearishIV cheap, mixed flow
Premium Sellers
Cash-Secured Put4.9
bullishIV too cheap, mixed flow
Covered Call4.9
bearishIV too cheap, mixed flow
For educational purposes only. Not investment advice.