ABBV Options Signal Bullish Momentum: Call OI Surge at $220–$230 and Whale Trades Hint at Upcoming Breakout

• Current price: $220.18 (up 0.75% from $218.54 close)
• Put/Call OI ratio: 0.71 (calls dominate, especially at $220–$230 strikes)
• Block trade of 6,138 ABBV20251017C230 calls signals long-term bullish positioning

The confluence of explosive call open interest at key resistance levels and a structural imbalance in options positioning suggests AbbVie (ABBV) is primed for a near-term upside breakout. With technical indicators showing a short-term bearish pullback within a long-term bullish trend, traders must balance caution with conviction in a stock that’s historically shown resilience ahead of earnings and catalyst events.

Bullish Imbalance in OTM Options and Whale Positioning

The options market is painting a clear picture of asymmetric risk. For Friday expiration (this week), call open interest peaks at $220 (OI: 1,407), $222.5 (OI: 1,318), and $225 (OI: 1,175), while puts max out at $215 (OI: 952). This $5-wide call-heavy cluster directly aligns with AbbVie’s 30-day support/resistance zone of $222.25–$222.61, suggesting aggressive positioning for a breakout above this critical level.

The most striking anomaly is the block trade of 6,138 ABBV20251017C230 calls (expiring October 17, 2025) with a total value of $705,870. This represents 1.2% of total call open interest and indicates a large institutional player is hedging or speculating on a multi-year rally. Such long-dated, high-volume trades often precede earnings surprises or regulatory catalysts, particularly in a stock like AbbVie with a stable dividend yield and R&D pipeline.

While the call bias is strong, downside risks remain. The $215 put strike (OI: 952) and 200-day support zone of $185.22–$186.29 suggest some investors are hedging against a broader market selloff. However, the MACD histogram (-0.27) and RSI (60.8) indicate momentum is stabilizing, not collapsing.

News-Driven Context: Quiet Fundamentals, Active Options

With no headline news reported, the options activity appears decoupled from immediate fundamentals. AbbVie’s lack of recent press releases or earnings reports means this positioning is purely technical—driven by traders capitalizing on the stock’s position near its 30-day moving average ($213.28) and the upper Bollinger Band ($226.06). The absence of bearish news also removes a key counterweight to the call-heavy positioning, amplifying the likelihood of a short-term rally.

Investor perception is further skewed by AbbVie’s dividend yield (4.3%) and its role as a defensive play in a volatile market. Even without new product approvals or lawsuits, the stock’s technical setup is attracting momentum traders and income seekers alike.

Actionable Trading Setups

For options traders, the most compelling plays are:

• This Friday: Buy ABBV240927C225 (strike $225) at $1.25–$1.35. With 1,175 contracts of open interest, this strike aligns with both the 30-day resistance and the upper Bollinger Band. A close above $225 would trigger a cascade of stop-loss buying.
• Next Friday: Buy ABBV241004C230 (strike $230) at $1.10–$1.20. The block trade at this strike creates a self-fulfilling prophecy—liquidity is already pooled here, increasing the odds of a price push.

For stock traders, consider:

• Bullish entry: Buy ABBV near $222.25 (30-day support/resistance) with a stop below $218.63 (intraday low). Target: $226.06 (upper Bollinger Band) or $227.50 (next call OI cluster).
• Bearish hedge: Sell put spreads between $215 and $212.50 to capitalize on the put-heavy OI at those strikes. This protects against a pullback while maintaining upside exposure.

Volatility on the Horizon: Positioning for ABBV’s Next Move

The data tells a story of controlled optimism. While the short-term MACD crossover and RSI neutrality suggest consolidation, the long-term 200-day MA ($192.65) and bullish Kline pattern indicate a multi-month uptrend is intact. Traders should monitor the $222.61 resistance level—a break above this could trigger a retest of the 2024 high ($235.89) and validate the block trade’s thesis.

In a market where options positioning often precedes price action by 3–5 days, the current setup suggests upside momentum will resume by mid-October. For those willing to take calculated risks, the $225–$230 call strikes offer a high-probability, high-reward opportunity in a stock with strong fundamentals and a history of outperforming during earnings seasons.