4 Trade Ideas for Abbott Laboratories: Bonus Idea

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

Abbott Labs, $ABT, rose sharply off the March low, meeting resistance in mid-April. It consolidated in a rounded bottom and started back to the upside in July. That move topped in August with a gap higher and then a pullback. it filled the gap before finding support at the 50 day SMA in September and then reversed. It has been in broad consolidation since and ended last week back at resistance at that August high.

The RSI is moving up into the bullish zone with the MACD rising and positive. The Bollinger Bands® are opening and price may have gotten a bit away as it is is currently outside of the top of the bands. There is no resistance above 114.50. Support lower comes at 111.15 and 106 then 103.80 and 102.75 before 100.25. Short interest is low under 1%. The stock pays a dividend with a 1.26% annual yield and has been trading ex-dividend since October 14. The company is expected to report earnings next on January 20, 2021.

The November options chain shows biggest open interest at the 115 strike on the put side but at 110 then 115, both much bigger, on the call side. In the December options open interest is spread from 105 to 95 on the put side and builds from 110 to 120 on the call side. In the January chain open interest is widely spread on the put side from 105 down below 80. On the call side it builds from 85 to a peak at 120 and then falls after 130. The February options are the first chain to cover the next earnings report and show open interest building from 115 to a peak at 92.50 before dropping off on the put side. The call side is biggest at 100 and drops as it heads to 150.

Abbott Labs, Ticker: $ABT

Trade Idea 1: Buy the stock on a move over 114.50 with a stop at 111.

Trade Idea 2: Buy the stock on a move over 114.50 and add a December 110/100 Put Spread ($2.00) while selling the January 125 Calls ($1.99) to fund it.

Trade Idea 3: Buy the November/January 120 Call Calendar ($3.45) and sell the December 105 Puts ($1.11) to lower the cost.

Trade Idea 4: Buy the January 100/115/125 Call Spread Risk Reversal for $2.80.

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 saw an eventful first week of November with a Presidential election, a FOMC meeting and a non-farm payrolls report to attack markets, result in them reacting like champs with impressive moves to the upside all week.

Elsewhere look for Gold to continue its move higher while Crude Oil consolidates in a broad range. The US Dollar Index looks to move lower in consolidation while US Treasuries remain in a downtrend. The Shanghai Composite looks to continue to consolidate while Emerging Markets break out to the upside.

The Volatility Index is moving back to a normal range making the path easier for equity markets to the upside. Their charts look strong, especially on the shorter timeframe. On the longer timeframe both the QQQ and SPY are back at resistance at all-time highs with the IWM trending higher towards its best print. 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