ABBV's Call-Heavy Options Setup: A Bullish Catalyst at $240 Strike?

• ABBV trades at $224.79, down 0.57% from its 52-week high of $238.48
• Options open interest shows 68% more bullish bets (calls) than bearish (puts)
• Block trade of 6,138 ABBV20251017C230 contracts hints at institutional optimism

Here’s what’s happening: ABBV’s options market is whispering a story of cautious bullishness. While the stock dips below its 30-day moving average today, the options data and technicals suggest a potential rebound toward $240—if volume and momentum align.

The Pressure Cooker of Call Open Interest

ABBV’s options chain is a pressure cooker of call buying. For Friday’s expiration, the ABBV20251212C240 strike has 201 open contracts, but next Friday’s ABBV20251219C240 sees a jaw-dropping 16,734 open contracts. That’s not just noise—it’s a strike price where 16,000+ traders are pricing in a $240 target. Combine this with the block trade of 6,138 ABBV20251017C230 contracts (a $230 call expiring in October), and you start to see a pattern: big players are hedging or scaling up for a late-year rally.

The put side isn’t ignored—ABBV20251219P185 has 3,403 open contracts—but the put/call ratio of 0.786 (for open interest) tells us calls dominate. This suggests a market bracing for a breakout, not a breakdown. The risk? If ABBV fails to hold above $224.34 (today’s intraday low), the bearish RSI (42.07) and bearish MACD histogram (-0.52) could gain momentum.

No News, But Quiet Confidence

There’s no recent headlines to sway sentiment, which means the options data is the main narrative driver. Without earnings reports or drug approvals to fuel volatility, traders are relying on technical levels and institutional positioning. This quiet environment can be a double-edged sword: it reduces noise but also limits catalysts for a sharp move. However, the heavy call open interest at $240 implies a self-fulfilling prophecy—if enough traders are betting on that level, liquidity could push the stock there.

Trade Ideas: Calls, Puts, and Precision Entries

For options traders: Buy the ABBV20251219C240 calls if ABBV closes above $228.01 (30D resistance). The $240 strike is a psychological hurdle where the open interest is thick enough to create a "magnet effect." For a conservative play, consider a call spread using ABBV20251219C230 (2,494 OI) as a cheaper alternative if the stock gaps higher.

For stock buyers: Consider entry near $227.50 (30D resistance level) if ABBV rebounds off its 200D MA ($204.63). A break above $228.01 could trigger a rally toward $235, where the 100D MA ($216.69) and 200D MA converge as support. For downside protection, a put spread at $220 (ABBV20251219P220) could hedge against a drop below the Bollinger Band lower bound ($219.39).

Volatility on the Horizon

ABBV isn’t screaming for a trade—it’s whispering. The key is timing: if the stock holds above $224.34, the call-heavy options data and long-term bullish moving averages (30D: $226.57, 200D: $204.63) suggest a late-year rally is in play. But if it cracks below $224.34, watch for a test of the 200D MA. Either way, the options market has already priced in a $240 ceiling by December 19th. Your job? Decide if you’re buying into that vision—or hedging against it.