JNJ Johnson & Johnson (JNJ) options offer ultra-defensive exposure with one of the lowest IV profiles among large caps, Dividend King status, and healthcare stability.

JNJ's low volatility and dividend yield make it ideal for conservative income strategies. The stock rarely makes large moves, creating consistent premium-selling conditions.

JNJ Options Characteristics

Avg Daily Volume

150K+ contracts

Typical Spread

$0.03-0.08

Typical IV Rank

10-25%

Expirations

Weekly, Monthly, Quarterly, LEAPS

Price Range

$140-170

Correlation

High correlation with XLV and defensive/dividend stocks

Best Strategies for JNJ

Covered Calls

Income on top of 2.5%+ dividend

Cash-Secured Puts

Ultra-low risk entry with premium

Collar Strategy

Protect retirement holdings

LEAPS Calls

Cheap long-term exposure due to low IV

Bull Put Spreads

Conservative income at support levels

Dividend King Stability

JNJ has some of the lowest IV among mega-caps. Options are cheap to buy and modest to sell. Best suited for ultra-conservative income generation layered on top of dividend income.

JNJ Options FAQ

Why is JNJ options IV so low?

JNJ's diversified pharma/medtech business, Dividend King status (60+ years of increases), and defensive nature create very predictable price behavior. Earnings moves are typically 2-4%, keeping IV suppressed.

Is JNJ worth trading options on?

For income: yes, but expect smaller premium. JNJ's high win rate compensates for lower premium per trade. For buying: LEAPS are very affordable due to low IV. Not ideal if you need high premium or large moves.