Investors in Johnson & Johnson (NYSE: JNJ) gained access to new options today, set to expire on November 20, 2023. The newly available put contract at the $260.00 strike price has a current bid of $7.00, providing a potential cost basis of $253.00 per share for investors. This represents a 4% discount compared to the current trading price of $269.68.
In addition, a call contract at the $280.00 strike price is available with a bid of $8.35. Selling this call as a covered call could yield a total return of 6.92% if the stock is called away at expiration. The put contract has a 65% chance of expiring worthless, while the call contract has a 58% chance of doing the same.
The implied volatility for both contracts is around 25%, while JNJ’s actual trailing twelve-month volatility is calculated at 18%, based on recent trading data.
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