ABBV - when having all your eggs in one basket works out

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.

Kommentar:

ABBV was downgraded by Credit Suisse, citing concerns over their over-dependency on Humira. This is potentially cause for concern.