Sell JNJ December Put Option and Buy Aetna April 2017 Call

By Joe Duarte • November 10, 2016

The post-election rally seems to have some short-term legs and the healthcare stocks are putting on quite a show. The early indications suggest that money is aggressively flowing into the health insurance companies. As a result, a change of tactics is called for.

I recommend the sale of the Johnson & Johnson December 16, 2016 115 Put Option (JNJ_121616P115) immediately followed by the purchase of the Aetna April 17 120 Call Option (AET_042117C120).

Sell Johnson & Johnson December 16, 2016 115 Put Option (JNJ_121616P115).

Buy Aetna April 17 120 Call Option (AET_042117C120) up to $9.

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Frank L.

11/10/16 ‐ 4:26pm ET November 10, 2016 at 4:26pm ET

Hi Joe,
I cannot join you in this option change….yes, no doubt the puts on JNJ were unfortunately a bad choice but we’ll all survive another day. However, AET is not for me. Good Luck !

Dave G.

02/13/17 ‐ 3:36pm ET February 13, 2017 at 3:36pm ET

Is it still current advice to buy the Aetna April 21 120 Call @ less than 9 now that it is hovering around 4.45 ?

Joe Duarte

02/13/17 ‐ 4:18pm ET February 13, 2017 at 4:18pm ET

Hi Dave:

That trade is closed. You can see the active option trades by clicking on the portfolio tab at the top of the page and clicking on the options trades heading.

Joe Duarte

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About The Author

Joe Duarte

Bio | Archive

Dr. Joe Duarte is Chief Investment Strategist and Editor of Profit Catalyst Alert and Weekly Cash Machine. He has been a professional investor and independent analyst since 1990. He is a former Registered Investment Advisor and author of the Bestselling "Options Trading for Dummies," now in its 4th edition and several other books including "Market Timing for Dummies" and "Successful Biotech Investing". Although Joe's favorite areas of the market are technology and healthcare, he is a versatile investor who enjoys finding that hidden gem stock before the crowd, no matter what the sector. He is an original CNBC Market Maven, and is visible regularly on Stockcharts.TV. He has published articles on Marketwatch.com and has been widely quoted in the major media including The Wall Street Journal and Barron’s magazine.