U.S. markets on Wednesday are following Europe's sell-off, with stocks being led down by traditionally safe, defensive sectors like the utilities and health care. Johnson & Johnson is one of those names getting sold, and it is seeing bearish option activity, as well.
The biggest trade this morning was the sale of 3,179 July 90-strike calls for $0.55. This a is neutral-to-bearish bet that the stock will be below $90.55 at July expiration.
There are a few reasons to bet that Johnson & Johnson, which is up 21 percent year to date when the S&P 500 is only up 13 percent, is due for a breather. The stock has slightly outperformed the health-care sector this year, benefiting from a flight to safe, defensive, and dividend-paying names.
(Read More: Johnson & Johnson's Stock Looks Too Healthy)