By Dan Darrow

November 22, 2022

Intraday Update: GSK, ABBV

Two afternoon updates on two Pharma names:

  • We are going to revisit GSK for a bullish trade. The recent roll up expired on Friday, and we were watching to see if the stock reset above 32.50 this week (which it has) to start a new leg higher. With momentum beginning to build again, a Jan20 $34 call will be opened, targeting an initial move to 35+. The swing trade will use a 30-40% net debit loss as a stop.
  • ABBV traded up near the mid-point of the Dec16 $155/$160/$165 call fly earlier, but the position didn't quite hit the 70%+ net debit gain we were looking for to roll up. Instead of holding for that net debit gain, the plan will be to close the current fly and open a tight Dec16 $160 - $162.50 call spread. This will provide a better chance to capitalize on move into the 160s.

Open Positions

* The following Open Positions pertain to the Options In Play trade ideas from this and previous editions. Disclosure of the Trader Co-Author’s actual portfolio holdings, as of the date of each publication, is made below under "Trader Author Portfolio Holdings.".

Trader Author Portfolio Holdings

**As of the date and time of publication