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$68 profit in JNJ

Writer: themoneyloafthemoneyloaf
Feb 6

Updated: Feb 15

Happy February (already?!)!

 

Back to the regular full-length newsletter this week and I'm going to mix things up a little and share not just profitable trades, but new trades so that you can read about how they played out fully. 

 

This week:

  1. $68 profit in Johnson & Johnson (JNJ)

  2. New trade in Texas Instruments (TXN)


 

$68 profit in JNJ


In December 2024, I sold a cash-secured put in JNJ at the $145 strike expiring Jan 17 2025, and received $128 in premium. 

 

We all know how December went, with no Santa rally - JNJ in fact dropped below $145 which meant the position was a losing one.

 

After spending most of the month in the $142-$144 range, I was pretty ready to treat this as a trade that wasn't going to work out. 

 

In fact I wrote a pretty lengthy post in my private community outlining 3 possible ways I was thinking of dealing with the position. 

 

Thankfully, sometimes you just get lucky. After the latest CPI reading, JNJ bounced and I was able to close the position for my usual profit target. 


jnj-options-trade-profit

JNJ has been a constant position in my portfolio. from 2022 to 2024 I locked in $4,115 in realized profits while trading JNJ.  

 

I also picked up JNJ at $160 per share via options. After netting off the option profits, that's cost basis of $118.85 per share, and this latest realized profit of $68 continues to help lower my cost basis even further. 

 

As mentioned in the screenshot, I don't have a problem with some unexpected luck in a trade, but it's never something I depend on. 

 

I'll still sketch out a plan and will be ready to execute that plan, which I think is a better way to approach any way of making money from the stock market. 

 

The whole thought process was shared with my private community as updates within my real portfolio (not recommendations). If you'd like to be part of the community, consider checking out the link below. 



 

New trade in TXN


TXN reported earnings last Friday and despite having good numbers, the market didn't like their future outlook and sent the stock down. 

 

Volatility after earnings is always good because it inflates options prices and provides an opportunity to start a new position. 

 

I sold the $175 cash-secured put expiring Feb 21 and received $155 in premium upfront. 


new-option-trade-txn

As of this Friday (just one week later), the stock is trading nearly $10 above the put strike and as long as it remains out of the money (above $175), extrinsic value will start to decay and hopefully hit my profit target. 

 

When that happens I'll be sure to update you with the final realized profit. 

 

I've already had 2 wins in TXN so far in 2025, with $226 in realized profit. The most recent trade was posted just 2 weeks ago, which you can read about at the link below. 



 

Closing thoughts & useful links


Lots of chatter about tariffs this weekend - how it's going to play out is anyone's guess. 

 

On my part, any volatility is an opportunity to look for better option prices in stocks that I don't mind owning. 


Have a good weekend!


 

 

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This article is for educational purposes only. This is my own portfolio which is being managed according to my goals and risk tolerance. Your situation is likely different and you should do your own due diligence before investing in stocks or options.

The Money Loaf is my journey towards FIRE (financial independence, retire early), and should be read as information and education, not financial advice. The Money Loaf is not a financial advisor and you should not make any financial decisions without doing your own due dilligence or consulting an advisor if you need to. 

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