ABBV Options Signal Bullish Bias: Target $240 Calls as Earnings and Pipeline Fuel Optimism

• ABBV trades at $223.47, down 0.73% from its 52-week high of $241.16.
• Options data shows heavy call open interest at $240 (3,618 contracts) and puts at $222.5 (698 contracts) for Friday expiration.
• Q3 earnings beat, dividend hike, and ASH 2025 data position ABBV for long-term growth.

Here’s the core insight: options market sentiment and technicals align for a bullish bias, with key resistance at $240 acting as a psychological threshold. While short-term volatility is likely, the long-term trend remains intact—especially with AbbVie’s recent pipeline wins and financial strength.

Bullish Pressure at $240 and Institutional Bets

The options chain tells a clear story: market participants are pricing in a strong move above $240. For Friday expiration (Dec 5), the $240 call has 3,618 open contracts—the highest among OTM strikes. This suggests institutional players are hedging or speculating on a near-term breakout. Meanwhile, the $222.5 put (698 OI) acts as a floor, indicating some defensive positioning if the stock dips toward its 200D MA at $204.02.

A notable block trade—ABBV20251017C230 with 6,138 contracts—hints at long-term bullish conviction. Though the expiration is in October 2025, this volume suggests a strategic bet on AbbVie’s pipeline progress, particularly in oncology and neuroscience. The risk? If the stock fails to break $240 by Friday, short-term call buyers could face losses, triggering profit-taking or panic selling.

News Flow: Earnings, Dividends, and Pipeline Wins

AbbVie’s recent Q3 earnings ($1.86/share) and dividend raise to $1.73/share (3.1% yield) have already priced in optimism. But the real catalysts are its clinical updates:

• Epcoritamab approval for follicular lymphoma and atogepant’s migraine trial success reinforce its leadership in oncology and neuroscience.
• The PVEK BLA submission for BPDCN and GUB014295 collaboration in obesity signal diversification into high-growth areas.

Investor perception is key here. While Shelton Capital reduced its stake, the broader market’s 70.23% institutional ownership and ETF inflows (e.g., XLV’s $310M) suggest confidence. The challenge? Translating these fundamentals into near-term price action without overbidding the stock.

Actionable Trade Ideas: Calls, Puts, and Stock Entries

1. Options Play: Buy ABBV20251205C240 (Friday expiration) at $1.05–$1.15. If ABBV closes above $240 by Friday, this call could see 20%+ gains. For a longer-term play, ABBV20251212C235 (next Friday) offers a cheaper entry if the stock consolidates near $225–$230.
2. Stock Entry: Consider buying ABBV near $222.5 (current support) with a stop-loss below $220. Target levels are $227.5 (30D support) and $240 (key resistance). If the stock breaks $240, re-enter at $245 for a short-term scalp.
3. Downside Protection: Sell ABBV20251205P222.5 (698 OI) at $1.20–$1.30 to hedge against a pullback. This strike aligns with the 200D MA and offers a 10%+ return if ABBV holds above $222.5.

Volatility on the Horizon

The next 72 hours will be critical. AbbVie’s presentation at the Piper Sandler Healthcare Conference on Dec 3 could amplify momentum, especially if management highlights its ASH 2025 data or Q4 guidance. Meanwhile, the put/call ratio of 0.77 (calls dominate) suggests retail and institutional buyers are leaning bullish—but don’t ignore the $222.5 put activity. A breakdown below $220 would trigger a reevaluation of the long-term trend.

In short: ABBV is at a crossroads. The options data and fundamentals point to a breakout above $240, but short-term volatility and block trades add layers of complexity. For traders, the $240 call and $222.5 put form a structured trade that balances risk and reward. For investors, the dividend yield and pipeline progress make ABBV a compelling hold—if the stock can stabilize near current levels.