ABBV Options Signal Bullish Bias: Key Strikes at $240 and $222.5 Highlight Risk/Reward Setup for Traders

• ABBV trades at $224.51, down 1.4% on heavy volume (1.9M shares), testing 30D support at $227.52
• Put/Call OI ratio at 0.775 favors calls, with heavy call OI at $240 (3,725 contracts) and puts at $222.5 (707 contracts)
• Block trade of 6,138 calls at $230 (expiring Oct 17) hints at institutional positioning ahead of key catalysts

The stock is dancing on a tightrope: technicals show a short-term bearish twist but long-term bullish DNA. Options data screams "cautious optimism"—let’s break down why this setup could be a golden ticket for traders with the right playbook.Where the Money is Flowing: Calls at $240, Puts at $222.5

Options market makers are betting on extremes. The 3,725 open interest at ABBV20251205C240 (strike $240, expiring this Friday) suggests a quiet bet on a sharp rebound. Meanwhile, 707 puts at ABBV20251205P2225 (strike $222.5) act like a safety net for downside risks. Think of it as a seesaw: heavy call OI at $240 implies traders expect a bounce, but the puts at $222.5 show they’re not ignoring the possibility of a breakdown. The block trade of 6,138 calls at $230 (ABBV20251017C230) is a red flag—someone big is hedging or accumulating ahead of key events. If the stock cracks below $224 (intraday low), watch for accelerated put buying at $220.

News That Could Tip the Scales

AbbVie’s recent wins—positive ECLIPSE trial data for atogepant and SKYRIZI reimbursement in Canada—should be tailwinds. But here’s the catch: markets often price in good news ahead of time. The stock’s 1.4% drop today might reflect profit-taking after these announcements, not a rejection of fundamentals. If the EMA approval for atogepant in Europe materializes (pending since Nov), that could reignite bullish momentum. The challenge? Short-term technicals (MACD below signal line, RSI at 60) suggest a pause before the next move. Investors need to ask: is today’s dip a correction or a warning sign?

Actionable Trades: Calls, Puts, and Precision Entries

For options traders, the most compelling plays are:

• Bullish: Buy ABBV20251205C225 (strike $225, expiring this Friday) if the stock rebounds above $227.52. Target $235 (Bollinger Upper Band) with a stop below $224.
• Bearish: Buy ABBV20251212P2225 (strike $222.5, expiring next Friday) if support at $224 breaks. Target $215 (lower Bollinger Band) with a stop above $227.52.

For stock traders, consider:

• Entry near $224.51 (current price) if RSI rebounds above 60. Target $228.50 (30D resistance) with a stop at $220.50.
• Breakout play: If ABBV closes above $229.49 (intraday high), push entry to $227.50 with a target at $235.

Volatility on the Horizon

This is a stock at a crossroads. Long-term bulls have 200D MA support at $203.86 to fall back on, but short-term risks loom. The options data and news both point to a "wait and see" phase—approval of atogepant in Europe or a breakdown below $220 could be the next catalysts. For now, the key is to balance aggression with caution: let the $225 call or $222.5 put act as your compass. If AbbVie’s fundamentals hold, this dip might be the entry everyone regrets ignoring in a few months.