There were 7 stocks on the watch list for today, Sep 2 2020. This fourth trade is in AbbVie Stock (ABBV) which I already placed a separate trade in earlier today as well but buying shares after yesterday’s plunge.
ABBVIE STOCK (ABBV)
Next earnings are Oct 30.
The stock collapsed on Tuesday on concern over price-fixing probe.
Goal of Trade 1:
For Sep 18 expiry I plan to sell the $87.50 put strike and aim for 60 cents or more. If filled I plan to buy the $77.50 put strike for Sep 18 expiry for 10 cents or less to turn this into a credit put spread.
I would own shares at $87.50 if the stock fell below this put strike.
Outcome:
Trade 1:
Sold 5 put contracts for Sep 18 expiry at the $87.50 put strike for $0.55 and sold 5 for $0.51 and I am paying $0.10 to buy 10 put contracts at the $77.50 put strike forming a $10 credit put spread returning 4.1% if held to expiry.
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. You always trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. The author assumes no liability for your investment decisions. Read the full disclaimer.