4 Trade Ideas for Abbott Labs: Bonus Idea

• Posted by Greg Harmon
• on October 23rd, 2023

Here is your Bonus Idea with links to the full Top Ten:

Abbott Laboratories, $ABT, comes into the week reaching up towards resistance. It has a RSI rising through the midline with the MACD crossed up but negative. The price moved back over the 20 day SMA Friday to end the week. There is resistance at 98.50 and 99.65 then 100.50 and 102 before 103.50 and 105.75. Support lower comes at 96.65 and 95.25. Short interest is low under 1%. The stock pays a dividend with an annual yield of 2.11% and began trading ex-dividend on October 12th. The company is expected to report earnings next on January 23, 2024.

The November options chain has biggest open interest at the 100 and 105 puts and from 105 to 120 on the call side. The December options chain shows biggest open interest at the 95 put strike and the from 95 to 105 on the call side. The January chain shows open interest build from 80 to a peak at 95 and 105 on the put side and at 120 on the call side. Finally, the February chain has big open interest from 80 to 100 and then at 65 on the put side, and at 105 on the call side.

Abbott Laboratories, Ticker: $ABT

Trade Idea 1: Buy the stock on a move over 98.50 with a stop at 96.50.

Trade Idea 2: Buy the stock on a move over 98.50 and add a November 95/90 Put Spread ($1.15) while selling the February 110 Call ($1.16).

Trade Idea 3: Buy the December/January 105 Call Calendar (90 cents) while selling the December 85 Put (53 cents).

Trade Idea 4: Buy the January 85/105/110 Call Spread Risk Reversal (free).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the October options expiration in the books, saw equity markets with renewed weakness as bond yields soared higher.

Elsewhere look for Gold to continue its assault in the all-time highs while Crude Oil consolidates in a run higher. The US Dollar Index looks to consolidate the break out while US Treasuries drive down to their all-time low prices. The Shanghai Composite and Emerging Markets continue to look better to the downside.

The Volatility Index looks to remain low but rising making the path more difficult for equity markets to the upside. Their charts also look weak, especially on the shorter timeframe. On the longer timeframe both the IWM and SPY are making lower lows suggesting more downside, while the QQQ hangs on at support. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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