After the market closed on Friday, Procter & Gamble (PG: sentiment, chart, options) started the weekend off by announcing it filed a lawsuit against fellow blue chip Johnson & Johnson (JNJ: sentiment, chart, options) . More specifically, PG is suing JNJ, along with McNeil-PPC, for patent infringement regarding Listerine Whitening Quick Dissolving Strips. PG claims the strips infringe on key patents involving both the tooth-whitening active ingredient and delivery systems. The company is seeking recovery of damages, and wants the defendants to stop making, selling, and importing any products that infringe its tooth-whitening patents.

Technically speaking, the shares of PG have gained roughly 32% since trading near the 50 level in late 2003, led higher on double-barreled support from their 20-month and 30-month moving averages. On Friday, the equity closed at $66.80. However, near-term options players are seemingly skeptical of the stock, as its Schaeffer's put/call open interest ratio of 1.14 ranks in the 93rd annual percentile.

Taking a look at JNJ's performance on the charts, the stock has been batted down by the 68-to-70 region several times since mid-2005, marking a series of higher lows on support from its 50-month moving average. Options-related resistance could also be a factor, as peak call open interest in both the May and June series of options is easily spotted at the 70 strike. The security is again creeping higher toward that resistance level, closing at $68.26 on Friday.