ABBV Options Signal Bullish Bias: Target $240 Calls as Volatility Nears Key Threshold

• ABBV surges 1.6% to $226.92, trading above its 30D moving average of $225.96.
• Options data shows heavy call open interest at $240 and $250 strikes for Friday expiration, while puts dominate at $185–$200.
• Analysts warn of a thin pipeline but highlight a 3.1% yield and institutional buying as stabilizers.

Here’s the takeaway: ABBV’s options activity and technicals are painting a clear picture. The stock is clawing its way out of a short-term bearish pattern while institutional money is quietly stacking bullish bets at the $240 level. If you’re looking to play this, the next 48 hours could be critical.

The Bullish Battle at $240 and the Shadow of Block Trades

ABBV’s options chain is a chessboard. This Friday’s top OTM calls are clustered at $240 (OI: 17,020) and $250 (OI: 4,067), suggesting smart money is hedging a rebound. The $240 strike, in particular, acts like a gravity well—its high open interest means a break above $228.3 (today’s high) could trigger a cascade of call buyers locking in profits.

But don’t ignore the puts. The $185 strike (OI: 3,403) and $200 strike (OI: 2,300) show bearish positioning, though their volume pales next to the calls. The put/call ratio of 0.78 leans decisively bullish, but that doesn’t erase the risk: A drop below the lower Bollinger Band at $220.18 would validate those bearish bets.

Then there’s the block trade: A massive 6,138 contracts of ABBV20251017C230 (expiring Oct 17) moved $705K worth of calls. While the expiration is months away, this suggests long-term conviction. Think of it as a breadcrumb—someone’s laying down a marker for a rally in early 2026.

News vs. Options: Contrarian Optimism or Caution?

Analysts are split. On one hand, AbbVie’s Q3 beat and $1.73 dividend hike (3.1% yield) have institutional investors like Geneos Wealth Management boosting stakes. On the other, Bank of America and DZ Bank downgraded targets due to a weak pipeline and biosimilar threats to Humira.

Here’s the twist: The options market isn’t pricing in doom. The Barchart Expected Move calculator pegs ABBV’s Feb 2026 range at $205.45–$241.19, with the sweet spot between $230–$242. That aligns with the heavy call buying at $240. In other words, the market is betting on a rebound despite the bearish headlines.

Your Playbook: Calls at $240, Stock Entry at 30D Support

For options traders: Buy ABBV20251219C240 (expiring Dec 19) if ABBV holds above $225. The $240 strike has the highest open interest and sits just 6% above the current price. If the stock breaks the intraday high of $228.3, this call could see explosive volume.

For stock players: Consider entry near $225.09–$225.57 (30D support/resistance). If ABBV holds here, target a run to $230–$232.5, where the 10D moving average and key call strikes congregate. A breakdown below $220.18 (lower Bollinger Band) would flip the script—consider a bearish put spread with ABBV20251219P220 and ABBV20251219P210.

Volatility on the Horizon: Balancing Risk and Reward

ABBV is at a crossroads. The short-term RSI of 30.79 hints at oversold conditions, but the MACD (-0.78) and bearish histogram warn of lingering downward pressure. The real test comes Friday: If ABBV closes above $228.3, the $240 calls could ignite. Below $220.18, the puts at $185–$200 will dominate.

Bottom line: This is a high-conviction trade. The options data and block trades scream for a rebound, but the pipeline risks are real. Play it smart—size your positions to reflect the volatility, and keep a close eye on the 30D support. If you’re right, the $240 calls could be your ticket to a 2026 rally. If you’re wrong? At least the dividend’s still there.