4 Trade Ideas for AbbVie: Bonus Idea

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

AbbVie, $ABBV, comes into the week approaching resistance and at an all-time high. It is still short of the target to 200 from a break of the descending triangle. The RSI has reset lower in the bullish zone and now has lots of room to the upside. The MACD is curling to cross up and positive after resetting lower. The Bollinger Bands® are starting to turn higher. There is no resistance above 182.50. Support lower sits at 180 and 176. Short interest is low under 1%. The stock pays a dividend with an annual yield of 3.4% and will begin trading ex-dividend on April 12th.

The company is expected to report earnings next on April 25th. The April options chain shows open interest focused at the 175 strike on the put side and building from the 170 strike to a peak at 180 then tailing to 190 on the call side. The April 26 Expiry chain estimates a move of just under $10 by expiry. The May chain has a grouping of open interest from 170 to 165 then biggest at 140 on the put side. The call side shows a plateau from 165 to 190. The June chain has biggest open interest at the 165 and 150 put strikes and sees it build from 135 to a peak at 190 on the call side.

AbbVie, Ticker: $ABBV

Trade Idea 1: Buy the stock on a move over 182.50 with a stop at 175.

Trade Idea 2: Buy the stock on a move over 182.50 and add an April 26 Expiry 180/170 Put Spread ($3.55) while selling the June 190 Calls (3.45).

Trade Idea 3: Buy the April/May 185 Call Calendar ($2.80) and sell the April 26 Expiry 170 Put (85 cents).

Trade Idea 4: Buy the June 165/185/195 Call Spread Risk Reversal ($1.85).

Premium Content

The Best

The Rest Premium                                                                                         

Free Content

The Rest

If you like what you see sign up for more ideas and deeper analysis using the Get Premium button above.   

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 First Quarter of the year in the books, saw equity markets exhibited strength.

Elsewhere look for Gold to continue its uptrend while Crude Oil builds on its move higher. The US Dollar Index continues to drift to the upside in consolidation while US Treasuries consolidate in their downtrend. The Shanghai Composite looks to reverse the short term uptrend while Emerging Markets consolidate in a broad range.

The Volatility Index looks to remain very low and stable making the path easier for equity markets to the upside. Their charts look strong, especially the SPY on both timeframes. The QQQ is showing some momentum divergence that could lead to more consolidation or a pullback while the IWM looks top step up as it breaks to 2 year highs. 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.

blog comments powered by Disqus
Dragonfly Caps Blog