AbbVie is attracting bullish option activity for the second time in the last week.
More than 7,000 September 60 calls traded in a strong buying pattern for $0.15 to $0.55 yesterday, according top optionMONSTER's Heat Seeker tracking program. Open interest in the strike was just 818 contracts before the session began, indicating that new positions were established.
These long calls lock are looking for a quick pop in ABBV by the end of tomorrow's session. But the contracts will quickly lose value and could expire worthless if shares pull back. (See our Education section)
The trades followed heavy buying in the September 57.50 calls last Thursday . The value of those contracts has tripled since then.
ABBV rose 1.74 percent to close at $59.62 yesterday after hitting an all-time high of $60.02 earlier in the afternoon. Shares of the pharmaceutical firm bounced right at their 200-day moving average around $51.50 in early August and have been climbing since.
Yesterday's total option volume in ABBV topped 18,000 contracts, more than double its daily average for the last month. Overall calls outpaced puts by more than 2.5 to 1.
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