Put Selling The Rise In Johnson and Johnson Stock With Momma

Johnson and Johnson stock is now entering its 5th year of being in my portfolio. Over that time I have had on average $60,000 tied to Put Selling Johnson and Johnson Stock . From 2009 to 2012 I have earned $28,153.00 primarily through Put Selling strategies. This marks a gain of 47% on Johnson and Johnson Stock  and an average gain of 11.8% a year. 2013 promises to be interesting . 7 analysts now have a buy recommendation on Johnson and Johnson Stock and 5 analysts have an upgrade on the stock.

Johnson and Johnson Stock Outlook

Reading through all the analysts’ reports the perception is that Johnson and Johnson Stock is undervalued in relation to its earnings potential in 2013 and beyond. In a report from Standards and Poor from last week, they indicated the following on the stock:

1) risk assessment for Johnson and Johnson stock was that Johnson and Johnson products are largely immune from economic cycles.

2) Johnson and Johnson does not rely on any single product category or customer for sustained growth. In other words the company is so heavily diversified and has so many products and customers that not one product or customer could probably damage the returns from their sales growth.

3) Johnson and Johnson enjoys competitive advantages owing to its financial resources, business scale and global sales capabilities.

4) Revenues are projected to rise above 8% from the $67.3 billion in revenue projected for 2012.

5) Synthes which was purchased in mid-2012 will contribute $4.3 billion in 2013 revenue.

6) Medical device sales should also benefit from gains in diabetes care, clinical diagnostics and surgical products.

7) Drugs should see robust revenue gains in new products such as Zytiga, Stelara and Xarelto.

8) Modest gains are expect in Johnson and Johnson consumer products sales.

9) Cost streamlining will impact the bottom line in 2013 and going forward.

10) They project operating earnings per share of $5.55 for 2013 over the $5.10 earned in 2012.

11) They project a price target of $78 for Johnson and Johnson Stock.

Johnson and Johnson Stock Put Selling Strategy Change

I have been a long time investor in Johnson and Johnson Stock through Put Selling and stock trading. I believe there are significant gains to be made in the stock including about a 10% rise in value from where it closed recently at $72.00. The 3 year chart below shows a longer-term pattern of higher highs and higher lows signaling an uptrend in the stock.

Johnson and Johnson Stock 3 year chart

Johnson and Johnson Stock 3 year chart

As well the chart above shows the significant accumulation of stock throughout this rise including the recent highs. Institutional investors are buying into the belief that Johnson and Johnson Stock is moving higher.

Walk That Profit Home To Momma Strategy

Years ago I wrote about a strategy I use when I believe a stock has significant potential to rise but I prefer to earn my profit through Put Selling using in the money naked puts. The strategy is a combination…………the rest of this strategy discussion article is for FullyInformed Members.

Walk That Profit Home To Momma Strategy

This strategy paper is 1750 words in length and will require 5 pages if printed.

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Johnson and Johnson Stock Internal Links

Review Johnson and Johnson Stock Trade For 2012

Review Johnson and Johnson Stock Trade For 2011

Review Johnson and Johnson Stock Trade For 2010

Review Johnson and Johnson Stock Trade For 2009

Review All Johnson and Johnson Stock Articles

Review All Members Only Johnson and Johnson Stock Articles

Johnson and Johnson Stock External Links

Johnson and Johnson Stock Investor Relations

Johnson and Johnson Stock Dividend History

Johnson and Johnson Stock Earnings & Financial Reports


Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.

 

  • Hi Richard
    I am not quite sure what this is referencing. Can you elaborate on it at all?

  • I think it comes down to your goal. My goal is to put sell and earn the profit as the stock climbs. If the stock falls I can use a rescue strategy or I can accept shares. I like JNJ Stock so accepting shares and then selling options against those shares would be my goal. But if you are trying to avoid the shares then it cannot hurt to wait for the earnings.There are thousands of stocks to trade every day. Why risk your capital in a trade that concerns you when there are others that are perhaps better at present for your strategy.
    Teddi