Cramer’s Comments: “Abbott Labs is dynamite.” Buy, buy, buy.
Jud’s Comments: Sounds like Cramer’s bullish on Abbott Labs.
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If you AGREE with Cramer…
Strategy: Buy-write
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| Leg | Action | Expiry | Stk | Call/Put | Price |
|---|---|---|---|---|---|
| Leg 1 | Buy | ABT | Stock | $58.48 | |
| Leg 2 | Sell | Oct | ABT | Calls | 60 |
| Premium: | Collect $1.35 | ||||
| Break Even: | $57.13 or higher | ||||
| Max Gain: | $2.87 plus dividends minus commissions | ||||
| Max Loss: | $57.13 plus commissions | ||||
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If you DISAGREE with Cramer…
Strategy: LEAP Put
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| Leg | Action | Expiry | Stk | Call/Put | Price |
|---|---|---|---|---|---|
| Leg 1 | Buy | Jan ‘10 | ABT | Puts | 50 |
| Premium: | Pay $3.60 | ||||
| Break Even: | $46.40 or lower | ||||
| Max Gain: | $46.40 or lower | ||||
| Max Loss: | $3.60 plus commissions | ||||

