ABBV Options Signal Bullish Bias: Key Strike Levels and Trading Setups for Dec 19 Expiry

• ABBV trades at $222.43, down 2.2% from its 52-week high of $227.45
• Call open interest dominates at $240 and $250 strikes (OI: 16,889 and 4,086), while puts pile up at $185 (OI: 3,403)
• Q3 earnings beat and dividend hike support long-term optimism, but BofA cuts price target to $233

The options market is whispering a story of cautious optimism. Despite today’s pullback, heavy call buying at $240 and $250 suggests institutional players are hedging for a rebound. Let’s break down what this means for your strategy.Bullish Sentiment at $240–$250, But Downside Risks Lurk

The call open interest at $240 (ABBV20251219C240) and $250 (ABBV20251219C250) is massive—over 20,000 contracts combined. That’s not just noise; it’s a bet that ABBV will reclaim its 52-week high by Friday. But here’s the twist: the stock is currently 13% below $240. For those calls to pay off, ABBV needs a sharp reversal.

Meanwhile, the $185 put (ABBV20251219P185) has 3,403 open contracts, hinting at a floor if the sell-off accelerates. The put/call ratio of 0.77 (calls > puts) leans bullish, but don’t ignore the block trade at ABBV20251017C230—6,138 contracts traded at $230. That’s a whale-sized bet on a rebound, not a crash.

Earnings Beat and Pipeline Hype vs. Valuation Concerns

AbbVie’s Q3 beat and dividend raise ($1.73/share) are solid, but BofA’s $233 target cut reflects reality: the stock trades at a 172 P/E, way above its 5-year average. Analysts love the pipeline (Rinvoq expansions, tavapadon), but those won’t boost the stock overnight. Institutional buyers (Shorepoint, GAMMA) are piling in, but retail traders should ask: Is this a "buy the rumor" play or a "sell the news" trap?

Actionable Trades for ABBV: Calls, Puts, and Precision Entries

1. Call Spread for Dec 19: Buy ABBV20251219C230 (in-the-money) and sell ABBV20251219C240. If ABBV holds above $225, the $230–$240 range could capture a rebound while capping risk.
2. Put Hedge for Long-Term Holders: Buy ABBV20251226P220 (next Friday’s expiry) at $220. If ABBV dips below $222, this put acts as insurance against a gap down.
3. Stock Entry at $220–$222: Use Bollinger Band support ($220.14) as a buy zone. Target $225 first (30D support level), then $230 (block trade level). Exit if it breaks $217.50.

Volatility on the Horizon

ABBV is caught between a rock (high valuation) and a hard place (pipeline optimism). The options data leans bullish, but don’t ignore the puts at $185–$200—they’re a warning sign. If the stock holds above $220, this could be a short-term buying opportunity. But if it cracks $217.50, brace for a test of the 200D MA at $205.22. Either way, the next 72 hours will clarify whether this is a rebound or a breakdown.