ABBV's Call-Heavy Options Setup and $240 Bullish Catalyst: A Strategic Play for Q4 Gains

• Current Price Action: AbbVie (ABBV) trades at $233.49, up 0.52% with volume surging past 2.4M shares. The stock is testing its 30D moving average ($226.63) and sits just below the upper Bollinger Band ($237.58).
• Options Imbalance: Call open interest (OI) outpaces puts 1.22:1, with heavy concentration at the $240 strike. Next Friday’s $250 call is the most watched contract.
• Block Trade Signal: A $705K block trade for 6,138 ABBV20251017C230 calls suggests long-term bullish positioning ahead of October 2025.

Here’s the core insight: ABBV’s options market is painting a clear picture—bulls are stacking up at key strike levels, technicals are aligned with a breakout pattern, and the lack of bearish news means this trade could run. Let’s break it down.The Call-Put Imbalance and Whale Moves: A Bullish Tightrope

ABBV’s options chain is a goldmine for sentiment analysis. This Friday’s $240 call (OI: 828) and next Friday’s $250 call (OI: 2,756) are the most watched contracts. That’s not random—those strikes align with the upper Bollinger Band and 30D resistance. Think of it like a magnet: if price breaks above $237.58, those calls could ignite a cascade of buying.

But here’s the twist: the put market isn’t silent. The $210 put (OI: 1,020) acts as a psychological floor. If ABBV dips below $224.86 (middle Bollinger Band), that strike could become a battleground. The block trade for ABBV20251017C230—6,138 contracts at $230—is a whale-sized bet. Someone’s confident this stock won’t just hold its ground but climb above $230 by October 2025.

The News Void and Market Narrative

There’s no recent headlines to muddy the waters—which is a blessing in disguise. Without earnings surprises or regulatory drama, the market is free to focus on technicals and options-driven momentum. That’s rare in pharma stocks, where news can swing like a pendulum. Right now, ABBV is in a "quiet storm" phase: no bad news, but enough options activity to suggest smart money is positioning for a Q4 rally.

Actionable Trade Ideas: Calls, Stock, and Risk Management

Let’s get tactical. For options players, the ABBV240C (Friday expiry) is a high-conviction play. With the stock at $233.49, this $6.51 out-of-the-money call offers leverage if ABBV breaks above $237.58. For a longer hold, the ABBV250C (next Friday) targets a 6.2% move and aligns with the 30D resistance. Both have solid liquidity.

Stock traders should consider entries near $230.32 (intraday low) if support holds. A breakout above $234.59 (intraday high) would target $237.58 first, then $245. A stop-loss below $227.76 (30D support) is prudent. For the bold, a bullish strangle—selling the $210 put and buying the $240 call—could capitalize on a directional move while collecting premium.

Volatility on the Horizon: Why This Setup Matters

ABBV’s technicals and options data are in sync. The RSI at 54.74 isn’t screaming overbought, but the MACD histogram (0.90) shows momentum gaining. With the 200D MA at $201.74 far below current levels, this isn’t a short-term bounce—it’s a trend. The key risk? A breakdown below $224.86 would trigger puts at $210 and test the 200D support range ($189.46–$190.94). But given the call-heavy positioning, I’d expect a rebound before that happens.

Final Takeaway

ABBV is at a crossroads. The options market is pricing in a $240+ move by October, technicals are bullish, and the lack of bearish news keeps the path clear. This isn’t a gamble—it’s a calculated play on a stock with strong fundamentals and a clear catalyst. For traders, the message is simple: position for a breakout, manage risk at key levels, and let the momentum do the work.