ABBV Options Signal Bullish Bias: Target $240 Calls as Long-Term Momentum Favors Buyers

• Options activity shows heavy call open interest at $240 and $235, with a put/call ratio of 0.76 hinting at bullish sentiment.
• Technical indicators suggest a short-term bearish pattern but long-term bullish momentum, with key support at $227.5.
• Recent FDA approvals and strong Q3 earnings could fuel upside, but insider selling adds caution.

Here’s the deal: ABBV is caught in a tug-of-war between short-term bearish signals and long-term optimism. The options market is clearly leaning bullish, with heavy call open interest at key strikes. If you’re trading this name today, the $240 call is your best bet—if the stock breaks above $228.

The Bull Case in the Options Market

Let’s start with the numbers. This Friday’s options chain shows ABBV20251128C240 and ABBV20251128C235 as the top call strikes, with open interest of 2,976 and 928 contracts respectively. That’s not just noise—it’s a signal that smart money is betting on a move above $228. The put/call ratio of 0.76 (calls > puts) reinforces this, showing investors are hedging downside but not pricing in a crash.

But here’s the twist: the bearish engulfing pattern on the daily chart suggests a near-term pullback is possible. However, the 30-day moving average ($227.06) and long-term bullish trend (200D at $203.69) mean any dip could be a buying opportunity. The block trade at ABBV20251017C230 (6,138 contracts) also hints at institutional interest in the $230–$240 range, which could act as a catalyst.

News That Could Tip the Scales

AbbVie’s recent headlines are a mixed bag. The FDA approval of EPKINLY and positive reimbursement news for SKYRIZI in Canada are major wins, especially for long-term growth in oncology and immunology. But the insider selling ($41M in shares) raises eyebrows. Think of it like this: the fundamentals are strong, but the short-term sell-off could create volatility. If you’re bullish, wait for a pullback to $227.5 (30D support) before entering. If you’re bearish, the $225–$220 range (lower Bollinger Band at $211.29) is where things could get ugly.

Actionable Trade Ideas

For options traders, the ABBV20251205C240 call (next Friday’s $240 strike) is the standout. Why? The stock is currently at $227.7, and a break above $228 would test the 30D support/resistance zone ($227.5–$228.01). If that holds, the $240 call could see a 20%+ move in 7 days. For a stock play, consider buying ABBV near $227.5 if it holds above $225.5 (intraday low). Target $235 as a first exit, with a stop-loss below $225.5.

Volatility on the Horizon

The next 72 hours will be critical. If ABBV breaks $228 and holds, the $240 call becomes a no-brainer. But if it dips below $225.5, the puts at $227.5 and $220 (ABBV20251205P222.5) could gain traction. Either way, the options market is pricing in a directional move—just pick your side before Friday’s expiry.