ABBV Plummets 4.1%: What's Fueling the Selloff Amid Volatile Options Activity?

Summary
• AbbVie (ABBV) trades at $219.92, down 4.09% from its $229.31 previous close
• Intraday range spans $217.86 to $227.24, signaling sharp bearish momentum
• Sector leader Johnson & Johnson (JNJ) declines 1.73%, hinting at broader pharma sector pressure

AbbVie’s dramatic intraday selloff has ignited a surge in options activity, with over 4.7 million shares traded and key put contracts seeing explosive volume. The stock’s 4.1% drop—its largest intraday decline since late 2023—has traders scrambling to decipher whether this is a technical breakdown or a sector-wide correction. With the pharmaceutical sector under pressure and leveraged ETFs absent from the data, the focus shifts to ABBV’s own fundamentals and options positioning.

Pharma Sector Weakness Drives ABBV's Sharp Decline
The selloff aligns with broader pharmaceutical sector underperformance, as Johnson & Johnson’s 1.73% decline suggests sector-wide profit-taking or regulatory concerns. While no company-specific news is cited, ABBV’s price action—breaking below its 30-day moving average of $227.61 and testing the 200-day average of $206.14—indicates a technical breakdown. The stock’s 62.17 RSI reading, though not overbought, shows weakening momentum as it drifts toward oversold territory. Bollinger Bands confirm the bearish shift, with the current price near the lower band at $221.13, signaling a potential continuation of the downtrend.

Pharma Sector Mixed as JNJ Leads, ABBV Lags Sharply
While the pharmaceutical sector remains broadly mixed, AbbVie’s 4.1% decline far outpaces Johnson & Johnson’s 1.73% drop. This divergence suggests ABBV’s move is driven by its own technical dynamics rather than sector-wide catalysts. The absence of leveraged ETF data further isolates ABBV’s selloff to internal factors, such as profit-taking after a long-term bullish trend or short-term bearish pattern recognition.

Options Playbook: Capitalizing on ABBV's Volatility with Strategic Puts
• 200-day average: $206.14 (below current price)
• RSI: 62.17 (neutral to bearish)
• MACD: 0.78 (bullish divergence) vs. Signal Line: 0.37
• Bollinger Bands: Lower band at $221.13 (near current price)

ABBV’s technicals present a high-volatility trading environment. Key levels to monitor include the 30-day moving average at $227.61 (resistance) and the 200-day average at $206.14 (support). Short-term bearish momentum suggests a test of the $215–$217.50 range, where several high-liquidity put options are concentrated. The options chain reveals two standout contracts for bearish exposure:

• ABBV20260109P215
- Put option, strike $215, expires 2026-01-09
- IV: 26.41% (moderate)
- LVR: 290.24% (high leverage)
- Delta: -0.197 (moderate sensitivity)
- Theta: -0.0637 (rapid time decay)
- Gamma: 0.0407 (high sensitivity to price swings)
- Turnover: $152,360 (liquid)
- Payoff at 5% downside (ST = $208.92): $6.58 per contract
- This contract balances leverage and liquidity, ideal for capitalizing on a continuation of the selloff.

• ABBV20260109P217.5
- Put option, strike $217.5, expires 2026-01-09
- IV: 26.28% (moderate)
- LVR: 156.44% (high leverage)
- Delta: -0.316 (strong sensitivity)
- Theta: -0.0386 (moderate time decay)
- Gamma: 0.0524 (high responsiveness)
- Turnover: $26,053 (liquid)
- Payoff at 5% downside (ST = $208.92): $8.58 per contract
- This option offers higher delta exposure for a sharper move below $217.50, with strong gamma to amplify gains.

Aggressive bears should prioritize ABBV20260109P215 for its liquidity and leverage, while ABBV20260109P217.5 suits those betting on a sharper breakdown below $217.50. Both contracts benefit from ABBV’s current positioning near key support levels.

Backtest Abbvie Stock Performance
After experiencing a -4% intraday plunge from 2022 to the present, ABBV (AbbVie) has shown a generally positive performance. The backtest data reveals that the 3-day win rate is 54.68%, the 10-day win rate is 55.77%, and the 30-day win rate is 58.61%, indicating that the stock tends to recover in the short term following a significant drop. The maximum return during the backtest period was 3.68%, which occurred on day 59, suggesting that while the stock can rebound, the magnitude of the recovery is generally modest.

ABBV’s 4.1% Drop: A Short-Term Opportunity Amid Sector Uncertainty
AbbVie’s sharp intraday decline reflects a technical breakdown rather than sector-specific news, with the pharmaceutical sector showing mixed performance. Traders should monitor the $215–$217.50 range as critical support levels, with the 200-day average at $206.14 serving as a long-term floor. The sector leader Johnson & Johnson’s 1.73% drop underscores broader pharma sector caution, but ABBV’s volatility presents a high-reward options play. For immediate action, focus on the ABBV20260109P215 put contract and watch for a breakdown below $215 to confirm the bearish thesis.