ABBV Options Signal Bullish Bias: Key Strikes and Trade Setups for Jan 16 Expiry

• ABBV trades at $222.06, down 0.92% from $224.13, but long-term MA200D at $206.43 suggests underlying strength.
• Options data shows call dominance (Put/Call OI ratio: 0.89) with heavy positioning at $230 and $240 strikes for Jan 16.
• Rinvoq’s Korean IBD study completion and DCF model undervaluation ($385.93 intrinsic) hint at long-term upside.

Here’s the thing: ABBV’s short-term dip masks a bullish options setup and strong fundamentals. Traders ignoring the bearish noise could position for a rebound—especially with key strike levels primed for action.

Where the Money Is: Calls at $230, Puts at $220, and the Quiet Block Trade Signal

ABBV’s options chain tells a clear story. For Friday’s expiry, calls at $230 (OI: 929) and $240 (OI: 327) dominate, while puts at $215 (OI: 1,477) and $220 (OI: 503) show defensive positioning. But the real drama unfolds for next Friday’s expiry: calls at $230 (OI: 6,741) and $240 (OI: 5,528) dwarf put activity, with puts at $220 (OI: 4,449) and $210 (OI: 4,303) trailing behind. This suggests a net bullish bias, with traders betting on a rebound above $230 or a sharper rally toward $240. The absence of significant block trades means no major whale moves to disrupt this setup—yet.

Rinvoq’s Real-World Data and DCF Undervaluation: Fuel for the Bull Case

AbbVie’s recent Korean Rinvoq study completion isn’t just a regulatory checkbox—it’s a growth catalyst. Positive real-world safety/effectiveness data could boost physician adoption in Asia, a key market for IBD treatments. Pair that with a DCF model suggesting ABBV is 41.9% undervalued at $224, and you’ve got a compelling case for long-term optimism. But here’s the catch: the stock’s short-term bearish Kline pattern and RSI near 50 mean volatility could test near-term support at $223.88–$224.15 before the bulls take control. Investor sentiment might swing if Rinvoq’s data gets more attention this week.

Trade Ideas: Calls for Jan 16, Puts for Hedging, and Stock Entry Levels

For options traders: ABBV20260116C230 (Jan 16 $230 call) looks attractive if ABBV breaks above its 20-day MA at $226.71. A tighter play: ABBV20260116C222.5 (OI: 788) if the stock retests support near $223.88. On the downside, ABBV20260116P220 (OI: 503) offers a hedge if the short-term bearish trend resumes. For stock buyers, consider entering near $223.88 (30D support) with a target at $230 if the 20-day MA holds. A stop-loss below $219.95 (lower Bollinger Band) would protect against a breakdown.

Volatility on the Horizon: Balancing Short-Term Noise and Long-Term Signal

ABBV’s technicals are in a tug-of-war: short-term bearish momentum vs. long-term bullish MA200D. The options market has already priced in a rebound scenario, but the stock needs to close above $226.71 (middle Bollinger Band) to validate that thesis. With Rinvoq’s growth narrative and DCF undervaluation in play, the Jan 16 expiry could be a pivotal moment. Traders who ignore the 0.92% dip and focus on the $230–$240 call-heavy positioning might find themselves on the right side of a breakout. Just keep an eye on that $219.95 level—it’s the line in the sand.