AbbVie Inc. (ABBV) Gains Don't Deter Pre-Earnings Bears

AbbVie Inc (ABBV) is gaining, but options traders aren't buying it

Digital Content Group
Apr 20, 2015 at 3:18 PM
facebook X logo linkedin


With a 2% lead to trade $63.56, AbbVie Inc (NYSE:ABBV) is trading at its highest level since late January. Still, options traders continue to target puts ahead of the company's earnings report, scheduled for release on Thursday morning. Specifically, the contracts are being exchanged at five times the expected intraday pace. Data is giving the impression of buy-to-open activity at the in-the-money May 64 put, meaning traders expect the shares to extend their losses below $64 through the close on Friday, May 15, when front-month options expire.

It's nothing new to see ABBV's speculators making bearish bets. The stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 0.52 outranks 73% of all other readings from the past 12 months. Said simply, put buying as been more popular than usual lately, relative to call buying.

Elsewhere on the Street, analysts have a different opinion on the pharmaceutical stock, which has fallen 2.9% in 2015. Specifically, 80% of covering brokerage firms deem AbbVie Inc (NYSE:ABBV) a "strong buy."

 

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.


Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!

 

 
 
 


 
 

Rainmaker Ads CGI