AbbVie Stock Has Great Strength
- Soars Nearly 14% -
by Ian Harvey
January 31, 2018
AbbVie Inc (NYSE:ABBV)
Here is an update of Abbvie’s winning options call trade after reporting earnings. This options trade was recommended as a consideration in the article Earnings Predictions for the Week Beginning January 22, 2018”; which produced excellent potential profits of 678% within a short period of time after executing the trade!
YOU NEED TO BE IN TO PROFIT!The Recommendation……
AbbVie Inc (NYSE:ABBV) -- a research-based biopharmaceutical company, will release earnings early. Abbvie is expected to report an EPS of $1.43, up 19%, on revenue of $7.56 billion, up 11.5%.
The stock was up 54.4% in 2017, comparing favorably with a gain of 16.3% recorded by the industry; and the bullish run of the stock should continue in 2018.
Abbvie has had a strong performance supported by a series of positive news including promising data from several pivotal studies, regulatory approvals in the U.S., Europe, and Japan for its competitive HCV medicine Mavyret and FDA approval for the sixth indication for Imbrivica and settlement of its Humira patent disputes with Amgen.
AbbVie's key drug Humira has been performing well based on strong demand trends for the drug, despite new competition. Moreover, Imbruvica has multibillion dollar potential and AbbVie is exploring the possibility of label expansion into solid tumors and autoimmune diseases. Also, several pivotal data readouts and regulatory milestones are expected in 2018.
Option trade to consider: Buy the ABBV FEB 16 2018 105.000 CALL at approximately $2.70.
AbbVie saw its shares move upwards by nearly 14% on Friday, after reporting better-than-expected fourth-quarter 2017 results. The move came on solid volume too with far more shares changing hands than in a normal session. This continues the recent uptrend for the company-as the stock is now up 26% in the past one-month time frame.
Results were driven by the performance of Humira, Imbruvica and Mavyret. Imbruvica continued to witness strong uptake for the chronic lymphocytic leukemia ("CLL") indication while Humira's performance was driven by robust demand despite the introduction of new mechanisms of action and competition from indirect biosimilars.
Also, Mavyret (hepatitis C virus - HCV) has been witnessing strong uptake
in both the United States and international markets. Mavyret exited 2017 with a
market share of 32% in the United States and is expected to become a major
growth driver for the company.
Abbvie provided an upbeat outlook for 2018 reflecting Mavyret's strong uptake, the continued robust underlying performance from other products, and a lower tax rate thanks to the passage of the U.S. tax reform.
AbbVie expects 2018 earnings per share in
the range of $7.33 - $7.43 on revenues of almost $32 billion. The mid-point of
the earnings guidance range reflects year-over-year growth of 32%; an
improvement over the company's previously provided guidance of 17% growth at
the mid-point (provided with third quarter results).
AbbVie's shares jumped 13.8% following the release of better-than-expected fourth quarter 2017 results and an upbeat outlook for 2018.
AbbVie's shares are up 103.9% over the last one year, compared to the 29% rally of the industry it belongs to.
At the time of the recommendation the share price was approximately $104.65.
On Friday the stock price hit a high of $125.86.
So, for those traders who managed to execute this trade recommended by Stock Options Made Easy; a nice tidy potential profit of 678% within a 24 hour period.
ACTION TO TAKE…….
"YOU NEED TO BE IN IT TO WIN IT!"
Now is the time to decide if it is worth continuing to hold this trade or exit on excellent profits. It is nearly always prudent to exit a trade before an unknown incident occurs that could rattle a sound profit, and this is a fine example of such a situation.
As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but during earnings season this strategy has been very profitable.
Our approach is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.
Our proven track record says it all!!
There were five (5) trades recommended for
consideration last week; all 5 trades were profitable – look at the chart
below, or check out “Earnings Predictions” for this week. Also included are other profitable recommendations for members of Stock Options Made Easy.
Earnings Results for the Week Beginning January 15, 2018
|January 17, 2018||MS APRIL 20 2018 55.000 CALL||P.P: 72%|
|January 16, 2018||BAC MARCH 16 2018 32.000 CALL||P.P: 40%|
|January 16, 2018||FAST FEB 2018 57.500 CALL||P.P: 33%|
|January 19, 2018||SNAP FEB 16 2018 13.000 PUT||P.P: 43%|
|January 19, 2018||SYMC FEB 16 2018 26.000 PUT||P.P: 85%|
|January 22, 2018||STLD FEB 16 2018 48.000 CALL||P.P: 50%|
|January 22, 2018||NFLX FEB 16 2018 230.000 CALL||P.P: 365%|
|January 23, 2018||VZ FEB 16 2018 52.500 CALL||P.P: 182%|
|January 24, 2018||LRCX FEB 16 2018 210.000 CALL||P.P: 89%|
|January 25, 2018||CELG FEB 16 2018 105.000 CALL||P.P: 85%|
|January 26, 2018||ABBV FEB 16 2018 105.000 CALL||P.P: 678%|
NOTE: P.P: – Potential Profit
Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.
What To Do Now…….
If you interested in being part of this profitable action just click here……