Option Investor

Option Writer Portfolio - November

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Company Description:
ABT Develops adult and pediattric pharmaceuticals, diagnostic systems for healthcare facilities and nutritional products. Abbott Laboratories has been in the news recently because of their announcement of a $5 billion stock repurchase program. In addition, the third-quarter earnings rose to $1.01 billion, or 69 cents a share, compared to $717 million, or 46 cents a share, in the same period a year ago. Sales rose 17.6% in the period to $7.5 billion. Analysts estimated, on average, earnings per share of 77 cents on sales of $7.4 billion, according to FactSet Research. Abbott raised its 2008 GAAP profit forecast to $3.23 to $3.25 a share.

We are looking at selling the November 50 Puts for $1.25 per contract. The initial margin is about $500 per contract. We are setting the technical stop at a breach of $51.94.

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