7/31/2022 Plan:
This week we look at AbbVie (Ticker: ABBV)
7/31/2022 Plan (continued):
- ABBV – Sell the Aug 26 135/130 put spread for 0.62
- Prices are as of market close 7/29/2022, actual fill and strikes may differ depending on Monday’s open, post will be updated accordingly.
- All trades are for educational purposes and do not constitute advice
7/31/2022 Commentary:
AbbVie is a biopharmaceutical company. It was spun off from Abbot Labs almost 10 years ago. It sold off pretty sharply after missing earnings and this trade assumes the sell off doesn’t continue. With the stock closing at 143.51 we have some room to the downside before our short strike of 135. I’d actually hold shares if the stock ends up between the strike prices as it pays a nearly 4% dividend.
Feel free to Reach out with questions on this or anything else!
8/1/2022 Entry:
Sold ABBV Aug 26 130/125 put spreads for 0.56. Sold lower strikes as the name sold off.
8/6/2022 Update:
The ABBV put spreads are now worth 0.49, for a current profit of $7/spread sold. I’ll be holding these as we still have a decent amount of time and ideally some more profit!
8/14/2022 Update:
The ABBV put spreads are down to 0.11, for a current profit of $45/spread sold. They have two weeks remaining and there may be an opportunity to close for 0.05 later this week.
8/22/2022 Update:
The ABBV put spreads expire this Friday. The bid/ask is a bit wide, but they could probably be closed for 0.05 or less any time this week. With them pretty far out of the money, they are low risk, but certainly taking them off cheaply guarantees a profit. I’ll look to close if I have time on Monday.
8/27/2022 Close:
The ABBV put spreads expired worthless on Friday. We sold them for $56 and took in the entire profit. A nice outcome and while it sold off in the final week was never in significant trouble.
