4 Trade Ideas for Abbott Labs: Bonus Idea

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

Abbott Laboratories, $ABT, started higher in a ‘V’ shaped recovery in March. It continued to a top in April and stalled. It has been consolidating since over support and against falling trend resistance. The last 3 weeks it has tightened the range against resistance. The Bollinger Bands have been getting tighter. The price action last week saw it push through the trend resistance and up to the horizontal resistance.

The RSI is rising in the bullish zone with the MACD also moving higher and just turning positive. There is resistance at 92.50 and 95 then 96.60 and 98 before 100. Support lower comes at 90 and 87.50 then 83. Short interest is low under 1%. The stock pays a dividend with an annual yield of 1.56% and will start trading ex-dividend on July 14. The company is expected to report earnings next on July 16.

Options expiring this week show biggest open interest on the put side at the 87 strike. On the call side it is much bigger at the 95 strike. The July options chain shows the largest open interest at the 90 put strike, but with bigger size at the 90, 92.50 and 95 calls, but biggest at 100. In August, the open interest on the put side is spread from 70 to 90, while it builds in a tighter spike centered on 100 from 87.50 to 115 on the call side.

Abbott Laboratories, Ticker: $ABT

Trade Idea 1: Buy the stock on a move over 92.75 with a stop at 91.

Trade Idea 2: Buy the stock on a move over 92.75 and add a July 92/89.50 Put Spread ($1.25) while selling the August 100 Call ($1.05).

Trade Idea 3: Buy the July/August 97.50 Call Calendar ($1.40) while selling the July 87.50 Put (80 cents).

Trade Idea 4: August 95/100 Call Spread while selling the August 85 Put (8 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. This week’s list contains the first five below to get you started early.  These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the first half of the year in the books, saw equity markets showed renewed strength into the holiday weekend.

Elsewhere look for Gold to continue higher while Crude Oil joins in a move to the upside. The US Dollar Index continues to drift lower in consolidation while US Treasuries consolidate. The Shanghai Composite looks to continue to the upside while Emerging Markets also move higher.

The Volatility Index looks to continue to move lower making the path easier for equity markets to the upside. Their charts also look strong, especially on the longer timeframe with the QQQ leading the charge. On the shorter timeframe the QQQ is also leading with the SPY at the June gap and the IWM trailing. 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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