ABBV Options Signal Bullish Bias as Block Trades and RSI Divergence Point to $230 Breakout Potential

• ABBV trades at $218.5, down 0.25% from its 52-week high of $220.94
• Options data shows 0.81 put/call open interest ratio, with heavy call OI at $230 and $240 strikes
• Block trade of 6,138 ABBV20251017C230 contracts hints at institutional bullishness

Here’s the core insight: ABBV sits at a technical crossroads. While short-term indicators like RSI (35.3) and MACD (-1.94) suggest oversold conditions, the options market is pricing in a potential $230+ breakout. This isn’t just noise—block trades and analyst commentary align with a stock that’s primed to test its 30D resistance at $230.11.

Where Institutional Money Is Flowing: Calls at $230, Puts at $212.5

Let’s start with the options chain. This Friday’s expiring calls show a clear concentration at $230 (OI: 2,809) and $240 (OI: 2,628), while puts peak at $210 (OI: 1,576) and $212.5 (OI: 1,317). The put/call ratio of 0.81 means bullish sentiment dominates—investors are betting on a rebound over a crash.

The most telling move? A massive block trade of 6,138 ABBV20251017C230 calls (expiring October 17, 2025) worth $705K. That’s not retail noise—it’s a whale-sized bet on a $230+ move. Combine this with the $230 call’s high open interest, and you’ve got a price level that’s both a psychological hurdle and a magnet for capital.

But don’t ignore the puts. The $212.5 strike has 1,317 open puts, suggesting some hedgers are bracing for a pullback. If ABBV dips below its 200D MA ($200.43), those puts could accelerate a short-covering rally. The key is watching whether the $217.09 intraday low holds—it’s a critical support level.

Earnings Beat Meets Real-World Headwinds

AbbVie’s Q3 results were a mixed bag. On the plus side, $15.7B in revenue (up 9.1% YoY) and a $1.86 adjusted EPS beat look strong. The $4.7B Skyrizi and $2.1B Rinvoq numbers prove their immunology dominance. But the Botox Therapeutic segment’s 4.9% decline in cosmetics revenue is a red flag—margin pressures are real.

Analysts are split. Some see the 5.5% dividend hike and $10.65 EPS guidance as a win. Others worry about the $2.05/share drag from IPR&D expenses and the Capstan acquisition’s ROI. This duality shows up in the options market: while bulls are stacking up at $230, the puts at $212.5 reflect caution about near-term volatility.

Actionable Trades: Calls for Breakouts, Puts for Safety

For options traders, the ABBV20251017C230 call is a no-brainer if ABBV breaks above today’s open of $219.31. With 2,809 open contracts, this strike has liquidity and institutional backing. A better entry? Wait for a pullback to the $217.09 level—then buy the $222.5 call expiring next Friday (OI: 853) for a cheaper premium.

Bearish players should eye the $212.5 put (OI: 1,317). If ABBV closes below its 100D MA ($208.50), these puts could see action. But don’t go all-in—ABBV’s 30D MA at $227.56 is a stronger support than the 200D line.

Stock traders: Consider entry near $217.09 (intraday low) with a stop just below $215. First target is the 30D resistance at $230.11, then the 200D resistance at $230.76. If the $230 call block trade pays off, this could be a 7% move in three weeks.

Volatility on the Horizon

The next two weeks will test ABBV’s resolve. A break above $230.11 could trigger a parabolic move toward $240, fueled by the heavy call OI and bullish guidance. But a close below $212.5 would validate the puts’ bearish case. Either way, the options market has already priced in extremes—so the real action will be in execution.

Here’s the bottom line: ABBV isn’t just a dividend play anymore. With its pipeline advancements and strategic bets (like the Capstan acquisition), this stock has the fundamentals to justify the $230+ call buying. But don’t ignore the puts—they’re a reminder that healthcare stocks can be volatile when guidance misses or trials fail. Stay nimble, and let the options data guide your entries.