We have a number of positions to manage this week in Triple Play Income. Let’s start with ABBV that goes ex-dividend today.
AbbVie (ABBV): 167.00
AbbVie has been one of the few pharma companies trading higher this year hitting its 52-week high again last week. We were call out of the stock at a 2.30 profit last week and ABBV goes ex-dividend tomorrow (4/13) paying a 1.41 dividend.
The good news. The stock price has re-traced the last 2 days and we can get into ABBV at a lower price today at around $166.50.
We will do a buy/write on ABBV … buy the stock today and sell a covered call.
ACTION: Buy ABBV stock at market and sell the ABBV 29 Apr 170 call for a net debit 164.50
Buy ABBV stock today at around 166.50
Sell to open ABBV 29 Apr 170 call for a net credit of around 2.15 – 2.20
NOTE: ABBV is now our most expensive stock position. We still believe that this stock will continue to be a strong dividend performer as well as a solid premium trade going forward.
However, we recognize this could be too large of a position for some members in their portfolio. We will be adding additional positions to our Triple Play Income portfolio over the next 30 days including a stock trading well under $100. Stay tuned.
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