4 Trade Ideas for AbbVie: Bonus Idea

• Posted by Greg Harmon
• on February 13th, 2023

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

AbbVie, $ABBV, comes into the week jumping back up above the 200 day SMA and at resistance. This was after retracing 61.8% of the move up from the end of September to the top at the start of the year. The Bollinger Bands® have squeezed in to prep for a move. The RSI rocketed back higher and almost into the bullish zone with the MACD crossed up but negative.

There is resistance at 152.50 and 155.50 then 160 and 163 before 166.75 and 175. Support lower sits at 149.50 and 146. Short interest is low under 1%. The stock pays a dividend with an annual yield of 3.89% and began trading ex-dividend on January 12th. The company is expected to report earnings next on April 27th.

The February options chain shows the biggest open interest at the 150 and 145 put strikes. On the call side it is biggest at 150 and slowly tails to 175. The March chain has open interest spread from 150 to 130 on the put side, biggest at 145 and 140. On the call side it is biggest at 155 and 175. Finally, the May chain has open interest build from 165 to a peak at 125 and 120 on the put side. While on the call side it builds from 135 to a peak at 165.

AbbVie, Ticker: $ABBV

Trade Idea 1: Buy the stock on a move over 152.50 with a stop at 149.

Trade Idea 2: Buy the stock on a move over 152.50 and add a March 150/145 Put Spread ($1.40) while selling the May 170 Calls (98 cents).

Trade Idea 3: Buy the February/May 155 Call Calendar ($5.00) and sell the March 145 Puts ($1.20).

Trade Idea 4: Buy the May 135/155/170 Call Spread Risk Reversal ($2.90).

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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 heading into the February options expiration, saw equity markets lost some of their strength, giving back some of the recent gains, but remained with a bullish bias.

Elsewhere look for Gold to pause in its pullback while Crude Oil consolidates in a tight. The US Dollar Index continues to drift to the upside in the downtrend while US Treasuries consolidate after their bounce move. The Shanghai Composite and Emerging Markets both look to consolidate in their uptrends.

The Volatility Index looks to remain stable in the normal range making the path easier for equity markets to the upside. Their charts are building bull flags on the shorter timeframe, consolidating the moves up. On the longer timeframe the SPY, IWM and QQQ all continue to hold over the November highs showing some strength. 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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