ABBV Options Analysis: $190 Put Contract Offers Significant Appeal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: NASDAQ.COM
- Put Option Appeal: The current bid for the $190 put option is $0.85, and if an investor sells this contract, they commit to buying the stock at $190, resulting in a cost basis of $189.15, which represents about a 13% discount compared to the current price of $217.59, making it attractive for those interested in ABBV shares.
- Yield Potential: Should the put option expire worthless, the premium would yield a 0.45% return on the cash commitment, or an annualized 3.80%, referred to as YieldBoost, highlighting the potential profitability of this contract.
- Call Option Returns: The $220 call option has a current bid of $5.25, and if an investor buys ABBV shares at $217.59 and sells this contract, they could achieve a total return of 3.52% if the stock is called away at expiration, indicating the profit potential of this strategy.
- Market Volatility: The implied volatility for the put option is 38%, while for the call option it is 27%, which contrasts with the actual trailing volatility of 27%, indicating differing market expectations for ABBV's future price movements, which investors should monitor to optimize their trading strategies.
Analyst Views on ABBV
Wall Street analysts forecast ABBV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ABBV is 253.26 USD with a low forecast of 218.00 USD and a high forecast of 289.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
15 Buy
7 Hold
0 Sell
Moderate Buy
Current: 220.770
Low
218.00
Averages
253.26
High
289.00
Current: 220.770
Low
218.00
Averages
253.26
High
289.00
About ABBV
AbbVie Inc. is a global, diversified research-based biopharmaceutical company. It is engaged in research and development, manufacturing, commercialization and sale of medicines and therapies. Its product portfolio includes Immunology, Oncology, Aesthetics, Neuroscience, Eye Care and Other Key Products. Immunology products include rheumatology, dermatology and gastroenterology. Oncology products include Imbruvica, Venclexta/Venclyxto, Elahere and Epkinly. Aesthetics portfolio consists of facial injectables, plastics and regenerative medicine, body contouring, and skincare products. Its Neuroscience products include Botox Therapeutic, Vraylar, Duopa and Duodopa, Ubrelvy, and Qulipta. Eye Care products include Ozurdex, Lumigan/Ganfort, Alphagan/Combigan, Restasis, and other eye care. Other key products include Mavyret/Maviret, Creon, and Linzess/Constella. Its investigational candidate, bretisilocin, is for the treatment of patients with moderate-to-severe major depressive disorder (MDD).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
