TopOptionAlert
Oct 23, 11:40 PM
$ABBV NOV20 295C · still actionable
Zone:
$284 to
$288
Invalidation: close under
$280
Objectives:
$291.50, then
$300
The math: up 2.0% to the first objective and 4.9% to the second, against 2.1% risk on the invalidation, better than 2 to 1 to the second.
Dear friend, picture a drug that used to mean a trip to the infusion clinic becoming a shot a patient gives at home, and that is exactly what AbbVie won from the FDA today for Skyrizi in Crohn's disease, which widens the patient pool and makes the drug easier to stay on. Goldman lifted the price it expects the stock to reach to
$294 yesterday, and the 52 week high at
$291.40 is now the only ceiling left in sight. This is a swing: we ride the catalyst runup into earnings on Oct 30 and let the breakout do the talking.
P.S. Earnings print Oct 30 before the open, so this trade has a built in deadline.
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