ABBV Options Signal Bullish Breakout Potential: Focus on $240 Call OI and 0.77 Put/Call Imbalance

• ABBV trades at $228.94, down 0.56% from $230.24, but sits above all major moving averages
• Open interest shows 3359 calls at $240 (this Friday) vs 691 puts at $222.5, with a 0.77 put/call ratio
• Analysts raised price targets to $240–$260 after Q3 beat and dividend hike to $1.73/share

The options market is whispering a breakout story. With calls dominating open interest and technicals aligned bullish, ABBV could test key resistance levels this week. Let’s break down what the data tells us about where to focus.Bullish OI Clusters and Whale Moves: A Playbook for $230–$240

ABBV’s options chain shows heavy call open interest at $240 (3359 contracts) and $230 (903 contracts) for Friday expiration. This suggests institutional players are hedging or positioning for a near-term pop above $228.94. The $240 strike, 4.8% above current price, has become a psychological magnet—think of it as a "gravity well" for capital betting on a post-earnings pop or news-driven rally.

Meanwhile, the $222.5 put (691 OI) acts as a floor. If ABBV dips below its 30D support at $227.52, this strike could catch a bounce. But the 0.77 put/call ratio tells us bears aren’t in control—calls are winning the volume war.

Don’t ignore the block trade: 6138 contracts of ABBV20251017C230 traded on Oct 17. While the direction is unclear, this whale-sized call position suggests long-term conviction in the $230+ range. Combine that with Bollinger Bands showing the upper band at $239.70, and it’s clear: capital is stacking up for a push toward $240.

News Flow: Dividend Hike and Pipeline Wins Fuel the Fire

AbbVie’s recent dividend boost to $1.73/share (3.0% yield) isn’t just a shareholder love letter—it’s a signal of confidence. Analysts from BMO and JPMorgan raised targets to $240–$260, matching the $240 call OI sweet spot. This isn’t coincidence; it’s validation.

The Skyrizi reimbursement win in Canada and ASH 2025 data presentation add fuel. These aren’t abstract R&D wins—they’re real-world catalysts that could drive ABBV above $235 in the next 30 days. Remember: Skyrizi and Rinvoq are expected to drive growth until the mid-2030s. This isn’t a flash in the pan—it’s a multi-year story.

Actionable Trades: Calls for Friday, Stock for Breakouts

For options traders: ABBV20251205C230 (this Friday’s $230 call) offers a high-conviction play. If ABBV breaks above $228.94 intraday, this strike could see explosive gamma. For a safer bet, consider a bull call spread: buy ABBV20251205C230 and sell ABBV20251205C240 to cap risk while profiting from a $240 test.

Stock buyers: Consider entry near $228.94 if the price holds above 30D support ($227.52). First target is the Bollinger upper band at $239.70, with a secondary goal at $240 (matching analyst targets). Place a stop below $227.835 intraday low to protect gains.

Volatility on the Horizon: Why This Week Matters

ABBV’s setup is a classic "wall of worry" scenario. The options data, technicals, and fundamentals all point higher, but volatility remains. This Friday’s expirations could see a test of $230–$240 resistance. If ABBV clears $230.94 (intraday high), the path to $240 becomes clearer. Watch the $222.5 put for downside protection—if it holds, the rally could resume.

In the end, AbbVie’s story is about durability. With a fortress balance sheet, dividend growth, and blockbuster drugs in play, this isn’t just a short-term trade. But for now, the market is betting on a $240+ breakout—and the options data is cheering them on.