DailyPlay – Opening Trade (ABBV) Closing Trades (CLX, PYPL) – September 27, 2024

Closing Trades

• CLX – 28.79% gain: Sell to Close 7 Contracts (or 100% of your Contracts) Oct 18th $165 Puts @ $4.25 Credit. DailyPlay Portfolio:  By Closing all 7 Contracts, we will receive $2,975. We initially opened these 7 Contracts on September 17 @ $3.30 Debit. Our gain, therefore, is $665.
• PYPL – 102.22% gain: Sell to Close 19 Contracts (or 100% of your Contracts) Oct 18th $70/$75 Call Vertical Spreads @ $4.55 Credit. DailyPlay Portfolio:  By Closing all 19 Contracts, we will receive $8,645. We initially opened 11 Contracts on August 20 @ $1.99 Debit and then another 8
  Contracts on September 3 @ $2.61 Debit. Our gain, therefore, is $4,370 which is over 4% gain on our total Portfolio.

ABBV Bearish Opening Trade Signal

Investment Rationale

AbbVie Inc.(ABBV) recently broke below its trading range with strong momentum, underperforming the S&P 500. This breakdown suggests potential for further downside, with a target price of $183.

Although projected growth is in line with industry averages and net margins are comparable, ABBV trades at a 20% premium relative to its peers, presenting a significant downside risk.

ABBV – Daily

Trade Details

Strategy Details

Strategy: Long Put

Direction: Bearish Put

Details: Buy to Open 7 ABBV November 1 $185 Puts @ $291 Debit per Contract.

Total Risk: This trade has a max risk of $2,037 (7 Contracts x $291) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $291 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bearish trade on a stock that recently broke below its trading range and is expected to continue lower.

1M/6M Trends: Mildly Bearish/Bullish

Relative Strength: 5/10

OptionsPlay Score: 58

Stop Loss: @ $146 (50% loss of premium)

View ABBV Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Thursday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View ABBV Trade