ABBV Options Signal Bullish Bias: Key Strikes and Block Trades Point to $230+ Upside Potential

• ABBV’s price dropped 2% to $213.63, but options data shows heavy call open interest at $230 and $240 strikes.
• Put/call ratio of 0.82 (calls dominate) and a $705K block trade at the $230 call hint at institutional bullishness.
• Q3 earnings beat revenue estimates, but EPS was pressured by R&D charges and regulatory risks loom.

Here’s the core insight: ABBV’s short-term technicals are bearish, but options activity and news flow suggest a potential rebound. The stock is sitting at a crossroads—traders are betting on a rebound to $230+, but near-term volatility could test support at $212.50. Let’s break it down.

The Options Playbook: Calls Dominate, Puts Tell a Cautionary Tale

ABBV’s options chain is a goldmine of clues. For Friday’s expiration, the top call open interest is at $230 (2,831 contracts) and $240 (2,664), while puts are heavily concentrated at $115 (888) and $120 (762). That’s a stark imbalance—calls are nearly 3x puts at key strikes. Why does this matter? It means a lot of money is betting ABBV will rebound above $230 in the next week.

But don’t ignore the puts. The $115 and $120 strikes are extreme, suggesting some hedging or speculative bets on a catastrophic drop. That’s unlikely unless there’s a major regulatory blowup, but it’s worth noting. The real action is in the calls.

The block trade at ABBV20251017C230 (6,138 contracts, $705K turnover) is a red flag. Big players are loading up on this strike, which could push ABBV toward $230 as expiration nears. Think of it like a tug-of-war—calls are pulling the stock higher, but the current price is still below key moving averages.

News Flow: Growth vs. Margin Pressures

ABBV’s Q3 results were a mixed bag. Revenue hit $15.78B, driven by Skyrizi and Rinvoq, but EPS fell short due to a $1.50/share R&D charge. The dividend hike and new drug applications (like tavapadon for Parkinson’s) are positives. But here’s the catch: President Trump’s push for Medicare price cuts could crimp margins.

Investors are pricing in both scenarios. The DCF valuation suggests ABBV is undervalued at $406/share, but the 106.83x PE ratio screams overvaluation. This duality is reflected in the options market—bulls are buying calls for a rebound, while bears are hedging with extreme puts.

Actionable Trade Ideas: Calls for the Rebound, Stock for the Breakout

For options traders:

• ABBV20251017C230 (Friday expiry): Buy these calls if ABBV holds above $212.50. Target $230+ by Friday.
• ABBV20251024C220 (next Friday expiry): A cheaper alternative if you want to play the rebound with lower risk.

For stock traders:

• Entry near $212.50 (support level): If ABBV bounces here, target $220 first. A break above $228.64 (middle Bollinger Band) could push it toward $230.
• Stop-loss below $210: Protect against a breakdown in the short-term bearish trend.

Volatility on the Horizon: Balancing Bullish Momentum and Regulatory Risks

ABBV’s story is a tug-of-war between long-term growth and near-term headwinds. The options market is pricing in a rebound to $230+, but regulatory risks could introduce volatility. If the stock holds above $212.50, the path to $230 is clear. But if it breaks below $210, watch for a test of the 200D MA at $190.25.

Bottom line: This is a high-conviction trade for bulls. The block trade and call dominance suggest a short-term rebound is likely, but don’t ignore the risks. Keep an eye on the FDA’s decision on tavapadon and any updates on Medicare pricing. For now, ABBV is a stock where options traders and stock buyers can align—if they’re willing to ride the volatility.