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Johnson & Johnson  
Trades By Years
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View JNJ-2010 Trades
View JNJ-2009 Trades
JNJ Articles

Rolling Put Options Strategy
Squeaker Trade
Defensive Investing
Stuck In A Range
The Value Of A Plan
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About The Company
Market Cap 164.8B
Revenue (FYR) $62.5B
EPS (TTM) $4.87
Shares Out. 2.7B
Book Value $20.85
Dividend Yield 3.60%
Div/Share $2.16
P/E 12.3x
Price/Sales (FYR) 2.6
P/Cash Flow (TTM) 10.0x

Johnson & Johnson is a profitable Major Drugs company JNJ is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. Johnson & Johnson has more than 250 operating companies.

The Company operates in three segments. The Consumer segment includes a range of products used in the baby care, skin care, oral care, wound care and women's healthcare fields, as well as nutritional and over-the-counter pharmaceutical products.

The Pharmaceutical segment includes products in the therapeutic areas, such as anti-infective, antipsychotic, cardiovascular, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management, urology and virology.

The Medical Devices and Diagnostics segment includes a range of products distributed to wholesalers, hospitals and retailers. In July 2009, Johnson & Johnson completed the acquisition of Cougar Biotechnology, Inc. with approximately 95.9% interest in Cougar Biotechnology's outstanding common stock. 

 

 

 

 

 
  JOHNSON & JOHNSON  (JNJ) - 2009
ONGOING EVALUATION & TRADE  Bookmark and Share
The current strategy is selling naked puts near and at the money until I either accept assignment OR get assigned shares. Then I will turn to covered calls. Should the stock fall too low  making covered call selling impractical I will add to my stock position through selling naked puts to lower my overall cost.

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Should you find my strategy and ongoing evaluation of this trade of value I hope you will consider a tip for the time I spend detailing out this trade. I have set up a Paypal account for those who would like to donate. Thank you in advance. Remember, nothing on my site is financial advice. They are just my ideas and opinions. Investing is risky and losses can be large. Trade at your own risk. Read the terms of use

 

 

YEAR 1: 2009 - Trade Commenced Feb 26 2009
Goal for 2009: 8.5% (10 months)
Strategy: Sell Naked Puts Until Assigned
 
Capital In Use At End Of 2009 53,500.00
Income Earned in 2009 (10 months) 4276.00
Return On Capital in 2009 (5 months) 7.9%
 

 

 

 

 

 

TRADE COMMENCED: Feb 26 2009

 

Looking at the below chart we can see that over the past 5 years this stock has traded in a range approximately between 70 and 60 dollars. During the fall of 2008 when the bear market began to maul stocks, JNJ fell below 50 dollars. I believe owning this company below $60.00 would be a good entry point. 

Feb 26 09 52.44 Sold 5 Naked Puts Mar 50 @ .95     13.25     461.75 461.75
Mar 20 09 51.67 Expiration Day 5 Naked Puts Mar 50 Expired              
Mar 23 09 51.90 Sold 5 Naked Puts Apr 50 @ 1.55     13.25     761.75 1223.50
Apr 17 09 53.75 Expiration Day 5 Naked Puts Apr 50 Expired              
Apr 20 09 52.47 Sold 5 Naked Puts May 50 @ .85     13.25     411.75 1635.25
May 15 09 55.41 Expiration Day 5 Naked Puts May 50 Expired              
May 18 09 55.50 Sold 5 Naked Puts Jun 55 @ 1.10     13.25     536.75 2172.00
Jun 19 09 56.09 Expiration Day 5 Naked Puts Jun 55 Expired              
Jun 22 09 55.49 Sold 5 Naked Puts Jul 55 @ 1.00     13.25     486.75 2658.75
Jul 17 09 59.23 Expiration Day 5 Naked Puts Jul 55 Expired              
Jul 20 09 59.06 Sold 5 Naked Puts Oct 55 @ .75 (I believe the stock is overvalued at this stage and I would like to pick up this stock for around the 55.00 strike. In order to receive a decent premium I moved to writing further out - this time October)     13.25     361.75 3020.50
Sep 24 09 60.77 Sold 5 Naked Puts Jan 55 @ .60     13.25     286.75 3307.25
Oct 1 09 59.79 Bought Back 5 Naked Puts Oct 55 @ .05     13.25     (38.25) 3269.00
Oct 1 09 59.79 Sold 5 naked Puts Nov 55 @ .30     13.25     136.75 3405.75
Nov 16 09 62.04 Sold 5 Naked Puts Apr 55 @ .95     13.25     461.75 3867.50
Nov 20 09 62.31 Expiry: 5 Naked Puts Nov 55 Expired              
Dec 23 09 64.57 BTC 5 Naked Puts Jan 55 @ .04     13.25     (33.25) 3834.25
Dec 23 09 64.55 STO 5 Naked Puts Apr 60 @ .91     13.25     441.75 4276.00

END OF 2009 - $4276.00 / $53,500.00 = 7.99%

JNJ TRADES BY YEARS
VIEW JNJ-2011 TRADES
VIEW JNJ-2010 TRADES
VIEW JNJ-2009 TRADES

 

 

Disclaimer: There are considerable risks involved in all investment strategies. 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 or presented are financial advice, trading advice or recommendations. Fullyinformed.com is a private website. Everything presented and discussed are the author's ideas and opinions only.
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