JNJ Short! 2HI am shorting JNJ on the 2H chart. Price is forming a Double Top/Head and Shoulders-ish pattern at a major resistance. In the daily Chart price is forming a ascending triangle which also supports this short term short position as shown:
This will be a bear put spread as follows:
Long Put: $155, $0.23 premium
Short Put: $ 167.5, $4.66 premium
Expiry: 21st June 23
Max Loss: $4.43
Max Profit: $8.07
Break even price: $163.07
I am aware this is risky as I am shorting it prematurely before the break of the neckline. I do this as I am experimenting with options. There is a major resistance above protecting the downside but for safer entry please wait for the break of the neckline.