10/25/2013 FRI

Abbott Labs      NYSE:      ABT    $37.21

The stock looks like it is near a top after rallying back form the 32.75 area. With the controversy over Obamacare and the looming debate over the debt as well as the continuation of QE by the Fed this is another prime target poised for a sell off.

Avg Volume 9,200,000

Support     34.25*  33.00**   31.47**     30.1/ 29.50***

Resistance   37.61* 38.77**

Weekly Stochastics still showing sell after rally

IV Feb 19.61

Buy 35/30/25 +1/-2/+1 Feb Put Butterfly for .55 or better

Risk $55 Reward $445 per spread

Open Int. (est.)                strike        FEB 14 Monthly (119)

25                             4

26                         115

27                           32

28                         135

29                           65

30                         330

31                         270

32                         415

33                         455

34                         640

35                      3,700

EARNINGS ESTIMATES

                                                               Current Qtr                                   Next Qtr                               Current Year 
                                                                (12/2014)                                     (03/2014)                                (12/2013)

Average Estimate	0.58	0.49	2.01
Number of Estimates	13	9	18
Low Estimate	0.57	0.45	1.99
High Estimate	0.61	0.52	2.03
Year Ago EPS	1.52	0.42	5.07
EPS Growth	-61.59%	16.14%	-60.27%

       The risk is minimal if I’m wrong and the reward is great for a stock that has had a run up from a low in 2009 of 19.75.

*Disclaimer: This is not a recommendation. All trading entails risk. Anyone employing any strategies and having limited knowledge of options trading should consult with a FINRA licensed professional.