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johnson-and-johnson-stock-2013-trades

Johnson and Johnson Stock is widely held by small investors and institutional investors. It is the world’s most comprehensive, broad-based health care products manufacturer. It serves consumer, pharmaceutical, medical devices and diagnostics markets. Johnson and Johnson Stock has seen 28 consecutive years of earnings increases adjusted for special items and 50 consecutive years of dividend increases. In 1972 Johnson and Johnson stock dividend was just .009315. Today Johnson and Johnson stock pays an annual dividend of $2.25. Book value is $20.95 per share and cash flow is $4.78 per share. Johnson and Johnson is well-managed but it is not seeing substantial growth. Meanwhile with a Price to Earnings of 17.3 times it trades at a slight discount to other stocks in the diversified pharmaceuticals industry. Profit margin is 15.55% which is above the industry average of 11.7%.

Johnson and Johnson stock debt to capital ratio is low at 24% and its dividend payout ratio of 61.7 X is in line with the industry. Johnson and Johnson’s market cap is 209.2 billion and has revenue of 67.2 billion making it the 8th largest pharmaceutical company in the world.It is also the fifth largest global biologic company, the sixth largest global consumer health company and the world’s largest diverse medical devices and diagnostics company. Johnson and Johnson stock trades on the New York Stock Exchange and the company operates in 60 countries with its head office in New Brunswick, New Jersey. Stock symbol is JNJ Stock.

Johnson and Johnson Stock Strategy For 2013

The investment strategy for Johnson and Johnson stock takes into account the trading range the stock was in for much of 2012. Johnson and Johnson Stock increased 10.3% in 2012 and with the dividend, investors enjoyed a 14% gain. My strategy of Put Selling, a few stock trades and covered calls returned 16.1% in 2012 without ever earning the dividend. For 2012 JNJ Stock was easy to trade. I am expecting much of the same in 2013.

Johnson and Johnson Stock 2012 Chart

Johnson and Johnson Stock 2012 Weekly Stock Chart

My strategy for 2013 will remain unchanged from 2012. I will be primarily put selling and when appropriate buying the stock on pullbacks to take advantage of the trading range and selling the stock as it moves back up to the top end of its trading range. If assigned shares I will sell covered calls to be exercised out of the stock and then repeat the above cycle in Johnson and Johnson Stock.

Review Johnson and Johnson Stock Trades For 2012
Review Johnson and Johnson Stock Trades For 2011

Review Johnson and Johnson Stock Trades For 2010
Review Johnson and Johnson Stock Trades For 2009

Johnson and Johnson Stock Trades For 2013

Current JNJ Stock Status – Year 5

Capital Currently In Use: $85020.00
Income Earned in 2013: $12898.00
Total Income Earned Since Trade Started In 2009: $41051.00
Total Of My Own Capital Required If All Naked Puts Were Assigned: $43969.00
Number Of Shares If All Naked Puts Were Assigned: 1000
Share Price Valuation (Total Capital Required/Number of shares): $43.97


Date Stock At
Time Of
Trade
Action Taken (All Figures Are US Dollars)
ACTIVE TRADES ARE HIGHLIGHTED
Comm. Shares
Held
Capital
In Use
Gain/Loss Total
Income
Dec 31 2012 69.22 Bought 500 shares at $69.22 using the Bollinger Bands Strategy Trade
Comments: To understand this trade read this article. (status: Sold Jan 2 – $71.02)
5.00 500 (34615.00)
Dec 31 2012 69.22 Sold 5 naked puts Johnson and Johnson Stock 16MAR13 $67.50 for $1.05
Comments: To understand this trade read this article. (Status: BTC Feb 8 for .05)
10.00 33763.25 515.00 28153.00
Above are the final positions from 2012 that are being held into 2013
ALL TRADES BELOW ARE IN 2013

Jan 2 71.02 Sold 500 shares of JNJ Stock at $71.02
Comments: To understand this trade read this article.
5.00 0 35505.00 890.00 29043.00
Jan 2 71.02 Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 20APR13 $72.50 Strike for $2.40 (status: expired)
10.00 36260.00 1190.00 30233.00
Jan 9 71.60 Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 20APR13 $75 Strike for $4.40  (status: expired)
Comments: Now Using The Put Selling Strategy: Walk That Profit Home To Momma. Read this article to understand this Put Selling strategy.
10.00 37510.00 2190.00 32423.00
Jan 22 72.45 Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 16FEB13 $72.50 Strike for $0.85 (Status: closed Feb 8 for .02) 10.00 36260.00 415.00 32838.00
Feb 8 75.48 Buy To Close (BTC) 5 Johnson and Johnson Stock Naked Puts 16FEB13 $72.50 for .02 10.00 (20.00) 32818.00
Feb 8 75.48 Buy To Close (BTC) 5 Johnson and Johnson Stock Naked Puts 16MAR13 $67.50 for .05 10.00 (35.00) 32783.00
Feb 11 75.15 Sell To Open (STO) 5 Johnson and Johnson Stock Naked Puts 20APR13 $77.50 strike for $3.05 (status: expired)
10.00 38760.00 1515.00 34298.00
Apr 8 80.45 Sell To Open (STO) Put Selling 3 Johnson and Johnson Stock Naked Puts 18MAY13 $80 Strike for $1.37 (status: expired)
8.00 24008.00 403.00 34701.00
Apr 19 84.49 April Options Expiry $72.50, $77.50 and $75 puts expired
May 17 88.09 May Options Expiry $80 naked puts expired
May 31 84.27 Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 22JUN13 $85 Strike for $1.25 (status: BTC Jun 18 for .25) 10.00 42510.00 615.00 35316.00
Jun 18 86.00 Buy To Close (BTC) 5 JNJ Stock 22JUN13 $85 strike for .25 10.00 (135.00) 35181.00
Jun 20 82.25 Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 20JUL13 $82.50 Strike for $1.55 (status: BTC Jun 27 for .15) 10.00 41260.00 765.00 35946.00
Jun 26 86.00 Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 17AUG13 $87.50 Strike for $2.25 (status: BTC Jun 18 for .25) (now using the Walk That Profit Home To Momma Strategy – read this Feb 2013 article to understand the strategy)
10.00 43760.00 1115.00 37061.00
Jun 27 87.60 Buy To Close (BTC) 5 JNJ Stock 20JUL13 $82.50 strike for .15 10.00 (85.00) 36976.00
Jul 8 88.00 Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 17AUG13 $90.00 Strike for $2.85 – continuation of the Walk that Profit Home to Momma Strategy. (status: BTC Jun 18 for .25)
10.00 45010.00 1415.00 38391.00
Aug 1 94.00 End of Walk That Profit Home To Momma Strategy – stock overvalued in my opinion above $90. Closed all my trades. Will wait for the stock to fall back lower.
Buy To Close (BTC) 5 naked puts 17AUG13 $87.50 strike for .5 cents
10.00 (35.00) 38356.00
Aug 1 94.00 Buy To Close (BTC) 5 naked puts 17AUG13 $90.00 strike for .10 cents 10.00 (60.00) 38296.00
Aug 21 89.33 Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 21SEP13 $87.50 Strike for $0.97 (status: expired)
Read the trade alert for this trade
10.00   43760.00 475.00 38771.00
Aug 21 88.85 Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 19OCT13 $85.00 Strike for $1.04 (status: expired)
Read the trade alert for this trade
10.00   42510.00 510.00 39281.00
Aug 23 87.35 Bought 500 shares Johnson and Johnson Stock  (sold Aug 23 for $88.35) 5.00 500 (43680.00)
Aug 26 88.35 Sold 500 shares Johnson and Johnson Stock for $88.35 5.00 0 44170.00 490.00 39771.00
Sep 20 89.68 Sept Options Expiry: $87.50 naked puts expired
Sep 25 87.08 Comments: This article discusses a number of put selling strategies for JNJ Stock
Sep 30 86.25 Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 22NOV13 $85.00 Strike for $1.25 5.00 42510.00 615.00 40386.00
Oct 9 85.65 Sell To Open (STO) Put Selling 5 Johnson and Johnson Stock Naked Puts 22NOV13 $85.00 Strike for $1.35 5.00 42510.00 665.00 41051.00
Oct 18 91.63 Oct Options Expiry: $85 naked puts expired

Johnson and Johnson Stock Internal Links

Review Johnson and Johnson Stock Trades for 2013

Review Johnson and Johnson Stock Trades for 2012

Review Johnson and Johnson Stock Trades for 2011

Review Johnson and Johnson Stock Trades for 2010

Review Johnson and Johnson Stock Trades for 2009

Review Johnson and Johnson Stock Strategy Articles

Review Johnson and Johnson Stock Members Strategy Articles

Hide and Seek Covered Calls Strategy For Long-Term Holdings On JNJ Stock

Johnson and Johnson Stock External Links

Johnson and Johnson Stock Investors Relations

Johnson and Johnson Stock Reports & Quotes

Johnson and Johnson Stock DRIP Information


 

Disclaimer: There are risks involved in all investment strategies and investors can and do lose money. Trade at your own risk.

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