Hi Shoppers,

Friday’s trade action has created a bearish engulfing candlestick in Abbvie (Ticker: ABBV):

ABBV has had a tremendous rally since October 13th trading from a low of $136.37 up to a high on Friday of $149.55.

That is over 9.5%.

Friday’s bearish engulfing candle is formed at the top of this rally, created a new high and reversed on the day closing even lower, and completely engulfing the previous day’s red candle.

I am seeing some support at the $160.85 but I think ABBV can trade back down to the $155 level.

Looking at this week’s options:

I like the 162.50/157.50 put spread. The 162.50 puts are trading an implied volatility of 21.72 and the 157.50 puts have an IV of 23.69.

Be sure to wait for ABBV to trade lower in the first hour after the open before entering your trade.

Thanks for Reading … See You Next Tuesday.

Licia Leslie