ABBV Options Signal Bullish Breakout Potential: Focus on $240 Call and $185 Put as Volatility Rises

• AbbVie’s Q3 sales from Skyrizi and Rinvoq surged 46.8% and 35.3%, fueling long-term optimism.
• Options data shows a 20x imbalance in next-Friday open interest at $240 calls vs. $185 puts, hinting at a bullish bias.
• A massive block trade of 6,138 calls at $230 (expiring Oct 17) suggests institutional positioning.

The stock’s technicals and options flow tell a clear story: traders are pricing in a near-term breakout above $225, but downside risks linger near $220.The Options Imbalance: A Bullish Bet with a Safety Net

ABBV’s options chain is a chessboard of strategy. For next-Friday expirations (Dec 19), the ABBV20251219C240 call has 17,043 open contracts—a staggering 20x the open interest of the ABBV20251219P185 put at 3,403. This isn’t just noise: it’s a vote of confidence. When you see such a lopsided call/put ratio, it means big players are hedging for a sharp rally. But don’t ignore the puts. That $185 strike isn’t just a floor—it’s a psychological line where panic could set in if the stock cracks below $220.

The block trade of 6,138 calls at ABBV20251017C230 (expiring Oct 17) adds intrigue. While the expiration is weeks away, this volume suggests someone’s pre-positioning for a post-earnings pop. Combine that with the 53-year dividend streak and analysts hiking price targets to $270, and you’ve got a recipe for volatility.

News-Driven Momentum: Can Skyrizi and Rinvoq Sustain the Hype?

AbbVie’s Q3 results are the fuel here. Skyrizi and Rinvoq aren’t just growing—they’re dominating. At $4.7B and $2.2B in revenue, these drugs are the new Humira. But here’s the catch: the stock’s 1.31% drop today shows the market isn’t fully priced in yet. Retail traders might be chasing the rally, but institutions are betting on a $240+ future. The key question is whether the Street will reward this growth with a multiple expansion. If Skyrizi hits $20B by 2027 as promised, ABBV could trade at a premium to its current 16.8 P/E.

Actionable Trade Ideas: Calls for the Bold, Puts for the Pragmatic

For options traders, the ABBV20251219C240 call is a high-conviction play. If ABBV breaks above its 30D support/resistance range ($225.09–$225.58) and holds the 200D MA ($204.74), this $240 strike could pay off handsomely. Entry: $222–$223 if the stock holds above its intraday low of $220.23. Target: $229 (middle Bollinger Band) as a first exit, with $235 as a stretch if the Skyrizi/Rinvoq narrative gains steam.

For downside protection, the ABBV20251219P185 put offers a floor. If ABBV dips below $220, this strike could limit losses while capturing a rebound. The RSI at 36.7 suggests oversold territory, but don’t get greedy—watch the 100D MA ($217.01) as a critical support level.

Volatility on the Horizon: Balancing Bullish Hopes and Bearish Caution

The next two weeks will test ABBV’s resolve. With the 200D MA at $204.74 and the 30D MA at $226.41, the stock is in a tight squeeze. If it breaks above $226.41, the long-term bullish trend reignites. Below $220, the bear case gets louder. For now, the options market is pricing in a 5–7% move by Dec 19. That’s a tight window—but for traders who can stomach the risk, the rewards are clear. As one analyst put it, "ABBV is a phoenix rising from Humira’s ashes." Just don’t let the ashes catch fire.