LLY Stock Inching Towards Record High Ahead of Earnings

Puts are taking off in the options pits

Deputy Editor
Apr 22, 2020 at 1:49 PM
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Pharmaceutical concern Eli Lilly and Co (NYSE:LLY) is trading back within a chip shot of its April 20, record closing high of $157.79. The equity is up 2.2% at $156.05 as investors gear up for the company's first-quarter earnings report ahead of the bell, tomorrow April 22. 

The options pits are putting a little less faith in LLY today. So far, 2,033 puts have crossed the tape -- 1.35 times the intraday average -- compared to 1,809 calls. The June 130 put is by far the most popular. This preference for puts is unusual. Looking at the past 10 days, 3,293 calls have exchanged hands, more than doubling the 1,527 puts exchanged in the same two-week period. 

Optimism surrounding LLY is overwhelming, with six of the eight analysts in coverage calling it a "strong buy." There's still room for upgrades and/or price-target hikes, though. Two analysts still give out a tepid "hold," rating, and the consensus 12-month price target of $148.07 is a 5.1% discount to current levels. 

 

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