ABBV - when having all your eggs in one basket works out
Updated
AbbVie's bread winner is Humira - this drug accounts for the majority of their revenue. However, they did forecast that by 2020, revenue from Humira will be 21B - which is about 75% of their 2017 revenue of 28.22B.
Since AbbVie depends so heavily on their flagship, their stock is fairly volatile, giving this play more of a risk. Consider well-hedged positions (like married puts), or at least ITM leap calls.
Since AbbVie depends so heavily on their flagship, their stock is fairly volatile, giving this play more of a risk. Consider well-hedged positions (like married puts), or at least ITM leap calls.
Note
ABBV was downgraded by Credit Suisse, citing concerns over their over-dependency on Humira. This is potentially cause for concern.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.