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Today, we’re opening a new bullish trade on AbbVie (ABBV). From a fundamental perspective, ABBV looks strong. The company has a great opportunity for growth with its new venture to develop and commercialize BioArctic’s treatment platform for neurodegenerative diseases — like Parkinson’s, Alzheimer’s, ALS and others. With the aging of the baby-boom generation, this should be a growing profit center for the company. ABBV is also doing a nice job returning cash to shareholders via strong dividends (with a forward dividend yield of 3.58%) and a huge share-buyback program. Only Apple (AAPL), General Electric (GE) and Microsoft (MSFT) spent more on buybacks last quarter. These programs should continue to boost demand for the stock.

From a technical perspective, ABBV is bouncing up off both an up-trending support level and a horizontal support level at $63. This comes as the market is rallying following the more dovish than expected interest-rate hike expectations from the Federal Open Market Committee (FOMC). We expect the stock to climb back up to its recent highs around $67.50 in the weeks leading up to the company’s earnings announcement on Oct. 28.

Buy to open’ the ABBV November 67.50 Calls (ABBV161118C00067500).

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