ABBV Options Signal Bullish Momentum: Call OI Surpasses Puts, Key Strikes at $220–$230 Highlight Breakout Potential

• Current price at $218.02, down 0.24% from previous close, but trading above 30D MA ($213.28) and 200D MA ($192.65).
• Put/Call ratio for open interest at 0.71 (calls dominate), with heavy call OI at $220–$230 strikes and block trade of 6,138 contracts at ABBV20251017C230.
• Upcoming FDA decisions on Parkinson’s drug Tavapadon and patent extension for Rinvoq could drive volatility.

The confluence of bullish options positioning, strong long-term technicals, and catalyst-rich news flow positions AbbVie (ABBV) as a high-conviction trade. While short-term bearish momentum persists, the options market and fundamentals suggest a breakout above $222.50 could trigger a rally toward $226–$230.

Bullish Imbalance in OTM Options and Whale Activity

The options chain reveals a stark call/put imbalance, with open interest skewed toward upside strikes. For Friday expiration, the top five OTM call strikes ($220–$230) hold 4,734 total OI, compared to just 2,475 for OTM puts ($212.5–$217.5). This suggests institutional positioning for a near-term rally, particularly around $220–$225, where 1,407 and 1,318 OI are concentrated. The block trade of 6,138 contracts at ABBV20251017C230 (a $230 call expiring October 17, 2025) further underscores conviction in a multi-month breakout.

However, risks exist if ABBV fails to hold above its 30D support/resistance range of $222.25–$222.61. The $215 put strike (952 OI) acts as a near-term floor, but a breakdown below $217.50 (lower Bollinger Band) could trigger a retest of the 200D MA at $185.22. Traders should monitor the RSI (60.84) and MACD histogram (-0.27) for signs of waning momentum.

News Flow Amplifies Bullish Case

AbbVie’s recent news cycle aligns with the options market’s bullish bias. The FDA submission for Tavapadon—a Parkinson’s drug with Phase 3 data—could unlock $10B+ in peak sales if approved. Meanwhile, the Rinvoq patent extension to 2037 secures $15B+ in annual revenue through 2030. These developments, combined with positive Phase 3 results for SKYRIZI in Crohn’s disease and EU approval for Rinvoq in giant cell arteritis, reinforce AbbVie’s growth narrative.

Investor perception is further bolstered by the dividend increase (310% since 2013) and strategic expansion into dermatology and oncology. However, short-term volatility remains a risk ahead of the FDA’s Tavapadon decision (expected Q4 2025) and potential earnings revisions.

Actionable Trade SetupsOptions Play:

• ABBV251017C220 (October 17 $220 call): Buy at $1.50–$1.70 for a 10–15% return if ABBV closes above $220.50 by expiration.
• ABBV251017C222.5 (October 17 $222.5 call): Aggressive play for a $225+ move, with 1,318 OI indicating strong liquidity.
• ABBV251017P215 (October 17 $215 put): Hedge downside risk at $0.80–$1.00, with 952 OI as a liquidity anchor.

Stock Play:

• Entry: $222.25–$222.61 (30D support/resistance range).
• Target: $226.06 (upper Bollinger Band) or $227.50 (next call OI cluster).
• Stop Loss: $217.50 (lower Bollinger Band) to protect against a breakdown.

Volatility on the Horizon: Navigating ABBV’s Strategic Crossroads

The next 60 days will test AbbVie’s ability to balance short-term bearish pressure with long-term bullish fundamentals. A close above $225 would validate the call-heavy positioning and trigger a re-rating of its neuroscience and immunology pipelines. Conversely, a failure to hold $217.50 could reignite bearish sentiment, particularly if Tavapadon faces regulatory delays. Traders should prioritize liquidity-rich strikes ($220–$225 calls) and maintain a tight stop-loss to capitalize on the high-conviction setup.