ABBV's Call-Heavy Options Setup and $240 Bullish Pressure Signal Breakout Potential—Here’s How to Play It

• ABBV surges 1.07% to $231.96, trading above its 30D and 200D moving averages with RSI at 67.44 (oversold territory avoided).
• Options market shows call dominance: 0.766 put/call open interest ratio, with $240 calls (OI: 3,749) as the most watched strike this Friday.
• Recent FDA approvals for EPKINLY and AI-driven R&D advancements fuel long-term optimism, but insider selling raises caution.

Here’s the core insight: ABBV’s price action and options positioning are painting a clear picture. The stock is perched above key support at $228 and below resistance at $234, while call options at $240 and $235 show heavy institutional interest. This isn’t just noise—it’s a setup for a potential breakout. Let’s break down why this matters for traders today.

The Call-Heavy Options Imbalance and What It Reveals

ABBV’s options chain is screaming “bullish” right now. For this Friday’s expiration (2025-11-28), the $240 call strike has 3,749 open contracts—the highest on the board. That’s not random. It means big players are betting ABBV will punch through $234.08 (intraday high) and test $240 by expiration.

The put side is quieter, with the most active strike at $215 (OI: 436). That’s far below the current price, suggesting downside risk isn’t a major concern for most option buyers. The 0.766 put/call ratio (for open interest) reinforces this: calls dominate by a 28% margin, pointing to a market that’s pricing in upward momentum.

But don’t ignore the block trade. ABBV20251017C230 (a call expiring Oct 17) saw 6,138 contracts traded at $230, totaling $705K in turnover. That’s a whale-sized bet on a $230+ move. Combine that with the $240 call frenzy, and you’ve got a clear message: smart money is positioning for a rally.

News Flow: Catalysts and Contradictions

ABBV’s fundamentals are a mixed bag. On the positive side, the FDA’s full approval of EPKINLY for lymphoma is a major win. Analysts are raising price targets, and the drug’s potential to capture market share in oncology could drive revenue growth. Add in AI integration for drug discovery and the Mitokinin acquisition, and you’ve got a company primed for long-term innovation.

But here’s the catch: insiders sold $41M in shares recently. That’s not a red flag by default—execs often diversify portfolios—but it’s a signal to watch. If ABBV’s rally hits a wall in the short term, those sales could amplify volatility. The key is whether the stock can hold above $228 (30D support) while digesting this news.

Actionable Trade Ideas: Calls, Breakouts, and Strategic Entries

For options traders, the $240 call (ABBV20251128C240) is the most compelling play this Friday. Why? The open interest is massive, and the strike is just 3.5% above the current price. If ABBV closes near $234 by Friday, this call could see a 20%+ pop. For a longer-term bet, the $235 call (ABBV20251205C235) offers a safer entry with less time decay pressure.

Stock traders should consider entry near $226.92 (30D MA) if the price pulls back to test support. A break above $234.08 (intraday high) would validate the bullish case, with $240 as the next target. A stop-loss below $228.01 (30D support) would protect against a reversal.

Volatility on the Horizon: Balancing Risk and Reward

ABBV isn’t a one-way bet. The Bollinger Bands show the stock is trading near the upper band ($240.78), which means a reversion to the mean (toward $225.98) is always possible. But with the options market pricing in a $240 move and the technicals aligned, the bias is clearly to the upside.

Here’s the takeaway: This is a setup for traders who want to ride a breakout. The call options at $240 and $235 are your best bets, and the stock’s support/resistance levels give you clear entry/exit points. Just keep an eye on the insider selling—if ABBV stumbles below $228, it could trigger a short-term selloff. But for now, the cards are stacked in favor of a rally. Play it smart, and let the data guide your decisions.