ABBV Call Dominance at $230–$240 Signals Bullish Setup: How to Position for Earnings-Driven Upside

• AbbVie’s Q3 earnings beat and dividend hike lifted the stock 0.48% to $229.89, with call options at $230–$240 dominating open interest.

• Options data shows a 0.83 put/call ratio (calls outweigh puts), with heavy call OI at $230 (871) and $240 (599) for Friday’s expiry.

• A $230 call block trade of 6,138 contracts hints at institutional bullishness, while analysts raised price targets to $245.84.

Here’s the takeaway: ABBV’s options and fundamentals align for a bullish breakout. The stock is perched above key support at $226.10 and below resistance at $231.33, with call-heavy positioning and strong earnings momentum pointing to upside.

Bullish Call OI and Whale Moves: A Playbook for Breakouts

ABBV’s options chain is a goldmine for clues. The top OTM calls for Friday’s expiry ($230, $240) and next Friday’s ($240, $230) show heavy open interest, while puts are concentrated at $227.5 and $225. This isn’t just noise—it’s a signal.

Think of it like a football game: when the crowd’s energy is on one side, the play’s direction is clear. The 0.83 put/call ratio (calls dominate) suggests investors are betting on a rally. The $230 call block trade—6,138 contracts at $230—adds weight. That’s not retail noise; it’s a whale hedging or capitalizing on a near-term move.

But don’t ignore the risks. Puts at $227.5 and $225 (OI: 835, 827) hint at a safety net for bears. If ABBV dips below $228.98 (intraday low), those puts could trigger a short-term pullback.

Earnings and Analysts: Fuel for the Fire

AbbVie’s Q3 results were a rocket boost. Earnings of $1.86/share beat estimates, and the $1.73 dividend hike (5.5% increase) is a tailwind for income-focused investors. Analysts aren’t just nodding—they’re upgrading. BMO and Raymond James raised targets to $240 and $256, respectively.

But here’s the twist: The PDF AI downgrade to “Sell Candidate” adds a wrinkle. While fundamentals are strong, technical indicators like the MACD (-0.16) and RSI (47.3) suggest a potential consolidation phase. The stock’s 90% probability range ($208.07–$239.14) means volatility could spike if the $230–$240 call buyers push higher.

Trade Ideas: Calls for the Bull, Puts for the Pragmatist

For options: Buy the ABBV20260102C230 call (next Friday expiry). With OI at 429 and the stock near $230, a breakout could trigger a 10–15% move. Pair it with a ABBV20260102P227.5 put (OI: 621) to hedge downside risk.

For stock: Consider entry near $229.89 if support at $226.72 holds. Target $235 (RSI neutral zone) with a stop at $226.72. The 200D MA at $205.63 is a long-term floor, but short-term bulls are eyeing $230–$240.

Volatility on the Horizon: What to Watch

ABBV’s path hinges on three factors:

• Dividend ex-date (Jan 2026): Insiders sold $2.3M in August, but the 5.5% hike is a bullish signal.
• Options expiry (Jan 2): The $240 call OI (1420) could drive a rally if the stock breaks above $231.33.
• Clinical trial updates: Positive data from Ubrogepant or Etentamig could add fuel to the fire.

Bottom line: ABBV is a classic case of fundamentals and options sentiment aligning. The call-heavy positioning and earnings momentum make the $230–$240 range a high-probability target. But keep an eye on the $226.72 stop—this isn’t a one-way bet. Position accordingly.