ABBV Options Signal $230 Bull Call Play Amid Oversold RSI and Margin Compression Risks

• AbbVie’s Q3 earnings beat forecasts with $15.776B revenue, but margin compression from $14.5B one-off losses clouds near-term optimism.

• Options market shows heavy call open interest at $230 and $240 strikes (expiring Friday), while puts at $210 and $212.5 suggest downside insurance.

• RSI at 35.68 hints at oversold territory, but Bollinger Bands show price near lower bound (216.10), creating a tight trading range.

Here’s the thing: ABBV’s options activity and technicals are painting a mixed picture. On one hand, the stock is trading near its 200-day moving average (199.96) and RSI is screaming for a rebound. On the other, a $1.50/share hit from IPR&D expenses in Q3 means investors are hedging against margin risks. The key question is: Will the bulls push ABBV above $230, or will the puts at $210 act as a safety net? Let’s break it down.

Bull Call Bets at $230 Clash with Put Protection at $210

Looking at the options chain, the $230 call (ABBV20251017C230) has 2832 open interest expiring Friday—nearly double the next highest strike. That’s a whale-sized bet on a short-term pop. Meanwhile, the $210 put (ABBV20251017P210) has 1612 open interest, suggesting traders are bracing for a drop below the 200-day MA. The put/call ratio of 0.82 (calls > puts) leans bullish, but the block trade of 6138 contracts at $230 raises eyebrows. Why? It could signal a big player is hedging a short-term rally or prepping for a breakout. The risk? If ABBV fails to hold above $216.35 (current price), the puts at $210 could trigger a cascade of selling.

Q3 Earnings Beat vs. Margin Headwinds: What’s the Real Story?

AbbVie’s Q3 results were a mixed bag. Skyrizi and Rinvoq crushed revenue targets, but Humira’s 55% decline and a $1.50/share IPR&D hit dragged on margins. The dividend hike is a win for long-term holders, but the $14.5B one-off loss is a red flag. Here’s the catch: The options market is pricing in optimism around Skyrizi’s 46.8% growth and FDA approvals for Rinvoq. However, if the margin compression story dominates, the $210 puts could become a self-fulfilling prophecy. The Baron Health Care Fund’s recent addition of ABBV to its portfolio adds credibility to the bullish case, but the Simply Wall St. valuation (25.8% below fair value) warns of near-term pain.

Trade Ideas: Calls for Short-Term Pop, Puts for Downside Insurance

For options traders, the ABBV20251017C230 call (expiring Friday) is a high-conviction play if ABBV breaks above $217.05 (intraday high). Entry near $216.35 with a target at $220 (Bollinger middle band) and a stop-loss at $212.60 (intraday low) could capture a rebound. For next Friday, the ABBV20251024C220 call (613 OI) offers a cheaper bet if the stock consolidates. On the downside, the ABBV20251017P210 put (1612 OI) is a must-have if ABBV dips below $215.89 (previous close). For stock traders, consider a buy near $216.35 if the 30-day support (230.11–230.76) holds. A breakout above $230 would target $235 (next call-heavy strike), while a drop below $212.60 could test the 200-day MA at $199.96.

Volatility on the Horizon: Balancing Bullish Momentum and Margin Risks

The coming weeks will test ABBV’s resilience. The bulls need Skyrizi and Rinvoq to keep outperforming, while the bears will pounce on any margin-related headlines. The block trade at $230 suggests someone is confident in a short-term pop, but the RSI at 35.68 means a rebound is overdue. For now, the call-heavy options chain and Q3 guidance raise are tilting the odds in favor of a $230 test. But don’t ignore the puts at $210—this stock isn’t out of the woods yet. Stay nimble, and keep an eye on the dividend hike in February 2026. That could be the catalyst that turns this bearish correction into a long-term buy.