ABBV Options Signal Bullish Bias: Key Strike Levels and Block Trades Point to Strategic Entry Zones

• ABBV’s current price of $215.305 shows a 1.58% intraday gain, breaking above the 200D MA of $199.74.
• Options data reveals a 0.83 put/call open interest ratio, with heavy call OI at $230 and $240 strikes.
• A $705K block trade in the ABBV20251017C230 call suggests institutional bullishness ahead of October expiration.

Here’s the core insight: ABBV is perched at a technical inflection point. The stock’s 1.58% rally today has pushed it above the 200D MA and within striking distance of the lower Bollinger Band at $217.97. Meanwhile, options market activity—particularly the 2824 open interest at the $230 call and a massive block trade in that same strike—hints at a potential short-term breakout. Let’s break down what this means for traders.

The Options Imbalance: A Bullish Setup with Caveats

ABBV’s options chain tells a story of cautious optimism. The top OTM calls for Friday expiration are clustered at $230 (OI: 2824), $240 (OI: 2630), and $235 (OI: 569), while puts dominate at $212.5 (OI: 1366) and $210 (OI: 1268). This suggests traders are hedging downside risk but leaning into a potential rally. The 0.83 put/call ratio (call OI: 186,950 vs. put OI: 155,569) reinforces the bullish tilt.

But here’s the catch: The RSI at 25.50 is in oversold territory, and the MACD histogram (-2.19) shows bearish momentum. If ABBV fails to hold above $217.97 (lower Bollinger Band), the $212.5 put-heavy zone could become a magnet for short-term volatility. The block trade in the ABBV20251017C230 call—6,138 contracts worth $705K—adds intrigue. This isn’t just retail noise; it’s a whale-sized bet that ABBV will test $230 before October 17.

News Flow: Growth vs. Margin Pressures

AbbVie’s Q3 results were a mixed bag. Revenue hit $15.78B (up 9.1% YoY), driven by Skyrizi and Rinvoq in immunology. But GAAP EPS plummeted to $0.10 from $1.86 last year due to a $1.50/share IPR&D charge. The dividend hike and $70M Bioresearch Center expansion are positives, yet the 3.9% post-earnings drop reflects investor unease about margin compression and policy risks (e.g., Medicare price cuts under Trump).

This creates a tug-of-war for the stock. On one hand, strong revenue and product pipelines (like pivekimab for BPDCN) justify a higher multiple. On the other, the 12.1% GAAP operating margin and 5.5% dividend increase signal a focus on cash flow over growth. The options market seems to price in a resolution of this tension—either through a rebound in margins or a breakout in key products.

Actionable Trade Ideas: Calls for the Breakout, Puts for the Safety Net

For options traders, the most compelling setup is the ABBV20251017C230 call. With 2824 open interest and a block trade of 6,138 contracts, this strike has become a de facto price target. If ABBV closes above $217.97 (lower Bollinger Band) tomorrow, consider buying the $230 call expiring October 17 at a strike price of $230. The risk? A failure to hold above $217.97 could trigger a pullback toward $212.5, where the put-heavy zone offers a potential short-term floor.

For stock traders, the key entry level is $217.97 (lower Bollinger Band). If the price holds here, it could rally toward the 30D support zone of $230.11–$230.76. A breakout above $230 would validate the block trade’s thesis. Conversely, a drop below $217.97 could test the $212.5–$210 put-heavy zone, making the ABBV20251017P212.5 put a defensive play for those expecting a rebound.

Volatility on the Horizon: Balancing Bullish and Bearish Forces

The next 10 days will be critical. ABBV’s technicals suggest a potential breakout above $230, but the RSI and MACD need to confirm this with a sustained move above the 20D MA. Meanwhile, the FDA’s decision on pivekimab and any updates on Medicare pricing could sway sentiment. Traders should watch the $217.97 support level like a hawk—it’s the linchpin between a bullish rally and a bearish correction.

In short: ABBV is at a crossroads. The options market leans bullish, but fundamentals are a mixed bag. For those with a medium-risk appetite, the $230 call and $217.97 stock entry offer clear, data-driven opportunities. But don’t ignore the put-heavy zone at $212.5—this isn’t a one-way bet. Stay nimble, and let the price action guide your next move.

{}