ABBV Options Signal Bullish Bias at $230–$240, But $210 Puts Warn of Near-Term Volatility: How to Position for the Ex-Dividend Catalyst

• ABBV trades at $219.87, down 0.4% from its 52-week high of $244.81

• Call open interest spikes at $230 and $240 strikes (6,686 and 5,734 contracts), while puts dominate at $210 and $220

• Institutional buying, a $1.73 dividend (ex-dividend Jan 16), and a $5.6B oncology deal with RemeGen drive near-term focus

Here’s the takeaway: ABBV’s options market is split between bullish momentum at $230–$240 and defensive positioning at $210–$220. With the stock hovering near its 200-day MA ($206.71) and Bollinger Bands (lower at $218.01), the next 9 days could decide whether this is a breakout or a consolidation play.

Bullish Calls at $230–$240 Signal a Price Target, But Puts at $210–$220 Warn of Defense

ABBV’s options chain tells a story of divided priorities. The top OTM call strikes ($230 and $240) have 6,686 and 5,734 open contracts, respectively—nearly double the next highest call. This suggests institutional players are hedging for a potential $230+ move, possibly driven by the $1.73 dividend (3.13% yield) and the RemeGen licensing deal. Yet the top OTM puts ($210 and $220) have 4,374 and 4,341 open contracts, indicating a floor is being priced in. The 0.876 put/call ratio (calls > puts) reinforces the bullish bias, but the $210–$220 support cluster (30D: $220.04–$220.31) could trigger a short-term pullback if the stock dips below $218.01 (lower Bollinger Band). No major block trades today, so the action remains retail and institutional-driven.

News Flow: Dividend, R&D Pledges, and Pipeline Catalysts Fuel Optimism

ABBV’s recent news aligns with the options data. The $1.73 dividend (ex-dividend Jan 16) typically causes a 0.78% price drop, but the 3.13% yield remains attractive for income-focused investors. The $100B U.S. R&D pledge under the Trump deal and the RemeGen licensing agreement (up to $5.6B) signal long-term growth bets. However, the Zacks #3 (Hold) rating and mixed analyst targets ($235–$280) highlight caution. The key risk? Near-term margin pressures from Medicaid price cuts and Alzheimer’s setbacks (e.g., $3.5B charge from emraclidine’s failure). That said, the FDA decision on tavapadon (Parkinson’s) in 2026 and Rinvoq label expansions could offset these headwinds.

Trade Ideas: Calls at $230–$240, Puts at $210–$220, and a Core Position at $217–$225

For options traders, the ABBV20260116C230 (expiring Jan 16) and ABBV20260123C230 (next Friday) offer leverage if the stock breaks above $223.34 (intraday high). These strikes align with the 30D support ($220.04) and 200D MA ($206.71), creating a potential $230–$240 target zone. Conversely, the ABBV20260116P210 and ABBV20260123P210 could hedge against a drop below $218.01 (lower Bollinger Band), especially with the ex-dividend date approaching. For stock buyers, consider entry near $217 (lower Bollinger Band) with a target at $225 (30D support) and a stop at $210 (put-heavy zone).

Volatility on the Horizon: Balancing Bullish Momentum and Defensive Risks

ABBV’s next 9 days will test its ability to hold above $218.01 while managing the ex-dividend drop and FDA decisions. The options data suggests a 60/40 bullish bias, but the $210–$220 support cluster could force a consolidation phase. Traders should watch the ABBV20260116C230 and ABBV20260116P210 for directional clues. If the stock closes above $223.34 by Friday, the $230–$240 call strikes gain traction. Below $218.01, the $210 puts become critical. Either way, the dividend and pipeline catalysts keep ABBV in the spotlight.