Overnight Gains With AbbVie
In last week’s Trade of the Day, I informed readers of how we made money with AbbVie (NYSE: ABBV) using LEAPS options. We then recommended entering a spread, giving War Room members a chance at a huge profit in the future… at zero cost!
It didn’t take long for members to jump in and out of AbbVie again, this time for a short-term overnight gain of around 20%.
In The War Room, I always follow a group of stocks.
I follow them for various reasons…
Reason No. 1: A big news story that looks like it might have legs, like when MoneyGram received a huge investment from a crypto company. After a few weeks, the shares fell, and we jumped in for quick gains.
Want to know a secret?
It’s still on my screen!
Reason No. 2: Insider buying (which turned my attention to AbbVie). The shares sold off sharply after the company announced the acquisition of Allergan, another pharma giant. But a few weeks ago, I noticed significant insider buying, which is when I started to do some earnest fundamental research.
With each company I look at, I ask myself whether the fundamentals make a good investment for either the short term or the long term…
Are there catalysts in the short term that could lead to quick gains?
What are the long-term prospects in case I’m stuck owning the shares over time?
AbbVie checked all the boxes and made for a good short-term and long-term opportunity.
War Room Members took short-term profits twice in the span of seven days while managing to hold a long position free of charge!
Action Plan: Want to know what’s even better than following along in The War Room?
Learning what we do and how we do it!
We have some great traders and investors in The War Room, and they dispense great advice every day. Take that advice and create your own way of trading so you can experience the joys of financial independence by joining me in The War Room today!
About Karim Rahemtulla
With more than 20 years of experience, Karim has mastered the subtle art of options trading. What we admire about him is his ability to score huge gains while minimizing the massive amount of risk that often comes with options. Beyond his expertise in options trading, he is also the author of the best-selling book Where in the World Should I Invest? He publishes weekly about smart speculation in his latest free e-letter, Trade of the Day.