The investor now has the right to sell shares of the drug maker for $62.50, no matter how low it falls. The company will report second-quarter results next Wednesday, July 18, so the put buyer might be looking for a longer-term decline based on those results.
Owning puts is similar to selling a stock short , profiting from downside in the shares. But if the stock holds its ground or climbs, these options will expire worthless.
Abbott Laboratories shares ended the session up 0.03 percent to $65.18. The previous day it touched $66.30 before retreating.
Overall puts in the name outnumbered calls by almost 2 to 1, reflecting yesterday's bearish sentiment. Total volume was twice the daily average.
—By CNBC Contributor Chris McKhann
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Chris McKhann is an analyst and writer for OptionMonster. McKhann has no positions in ABT.