ABBV Options Signal Bullish Setup: Target $240 as Call OI Surges and Analysts Upgrade

• HSBC upgraded AbbVie to Buy with a $265 price target, citing strong earnings and valuation.
• Options data shows call open interest at $240 (next Friday) is 17,097 contracts—over 7x puts at $185.
• Block trade of 6,138 ABBV20251017C230 calls hints at institutional bullishness ahead of October expiry.

Here’s the takeaway: AbbVie’s options market is leaning hard into a bullish narrative. With call open interest dominating at key strikes and analysts raising price targets, the stock shows upside potential despite short-term technical jitters. Let’s break down why $240 could be the next battleground.

The Call-Put Imbalance and Whale Moves

ABBV’s options chain tells a story of conviction. For next Friday’s expiry, the ABBV20251219C240 call has 17,097 open contracts—nearly double the nearest rival. That’s not just noise; it’s a price level where big money is betting on a breakout. Meanwhile, puts at $185 ($185 OI: 3,403) suggest some hedging against a drop, but the put/call ratio of 0.78 (calls > puts) tilts the odds toward a rally.

Don’t ignore the block trade either. A massive 6,138 contracts of ABBV20251017C230 were traded recently. While the direction is “unknown,” the sheer volume implies smart money is positioning for a move above $230 before October. Combine that with RSI at 36.7 (oversold territory) and Bollinger Bands squeezing near the lower band ($221.41), and you’ve got a setup where a rebound feels inevitable.

News That Fuels the Fire

HSBC’s upgrade isn’t just a headline—it’s a catalyst. Raising the price target to $265 (a 17.7% upside) aligns with a DCF model valuing ABBV at $426. That’s a 94% upside from current levels. But here’s the kicker: AbbVie’s recent Q3 beat (EPS of $1.86 vs. $1.77) and dividend hike (3.1% yield) make this more than a speculative play. The company’s pipeline—like FDA-approved EPKINLY and Skyrizi’s Canadian reimbursement—adds real-world value.

Still, the block trade’s ambiguity lingers. If those October $230 calls are a hedge, it could mean sellers are preparing for a pullback. But with institutional investors trimming stakes (like Integrated Investment’s 32.3% cut), the stock’s fundamentals remain robust. For now, the news and options data are in sync: AbbVie’s story is about growth, not just stability.

Trade Ideas: Calls, Puts, and Precision Entries

For options traders, the ABBV20251219C240 call is a no-brainer if the price breaks above $225. The strike sits just 7% above current levels but has massive open interest to act as a self-fulfilling prophecy. For next Friday’s expiry, this is your high-conviction play. If you prefer a safer bet, the ABBV20251212P220 put (expiring this Friday) could hedge against a short-term dip, given the stock’s proximity to its 30-day support ($225.09).

Stock buyers should eye $221.41 (lower Bollinger Band) as a key entry. A close above $225.77 (intraday high) would validate the short-term bullish case, with a first target at $229.34 (middle Bollinger Band) and a stretch goal at $237.27 (upper band). A breakdown below $221.0 would flip the script, so keep stops tight.

Volatility on the Horizon

The next 48 hours will test AbbVie’s resolve. With RSI primed to rebound and options data stacked in favor of a rally, the $240 level isn’t just a number—it’s a psychological milestone. But don’t ignore the bears: the 200-day moving average ($204.83) is a long way off, but a slip below $221 could reignite short-term selling. For now, the cards are stacked for a breakout. Play it smart, and let the data guide your hand.