Market Whales Show Bearish Sentiments on AbbVie Options Trading

Deep-pocketed investors have recently signaled a pessimistic outlook on AbbVie (ABBV), as observed through their activities in the options market. Without clear identification of whether these entities are institutional players or high-net-worth individuals, the significant volume of trades in AbbVie options has garnered attention.

Monitoring carried out by options history analysis reveals a notable number of unusual transactions associated with AbbVie. Specifically, Benzinga's options scanner identified eight atypical options trades, suggesting that such occurrences are not the norm.

The detected sentiment among these influential market participants leans more towards the bearish side, with 62% bearish and 37% bullish undertones. A breakdown of the observed trades includes three put options worth approximately $118,937 and five call options totaling around $215,636.

Predicted Price Range

Based on the Volume and Open Interest of these contracts, it's inferred that the 'whales' are betting on a price target ranging from $150 to $170 for AbbVie over the next three months.

Understanding the Market Moves

The average open interest for today's AbbVie options trades stands at 3,580.29, accompanied by a total volume of 475.00. This information provides us with insight into the liquidity and market interest concerning these particular trades.

An examination of volume and open interest trends for call and put options, with strike prices between $150 and $170, over the past 30 days further demystifies the strategies of seasoned investors.

About AbbVie and Its Market Dynamics

AbbVie, a pharmaceutical giant, is heavily involved in immunology and oncology with its blockbuster drug, Humira, accounting for nearly half of the company's profits. Since spinning off from Abbott in 2013 and with the acquisition of Allergan, AbbVie has diversified its product portfolio.

Currently, AbbVie's stock showcases a volume of 1,002,541 with a 1.81% increase in price, now at $155.35. Although the RSI readings hint at a potential overbought scenario, the stock's earnings report is eagerly awaited 48 days from now.

Analyst Perspectives on AbbVie

Recently, three industry analysts set the average price target for AbbVie at $170. Assessments by experts from Goldman Sachs, HSBC, and Raymond James reveal varied opinions, ranging from a Buy rating with a $173 target to a Hold status with a $156 objective. Despite these mixed signals, there is a consensus on the stock's performance capabilities.

Options trading is laden with risk, yet it offers the potential for substantial returns. Traders counter these risks through continuous learning, strategy adjustments, and market vigilance.

Investors, Bearish, Options