Eli Lilly Stock Rises on Upbeat Drug Data

The stock has a wealth of technical support

Deputy Editor
Jun 6, 2022 at 10:29 AM
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Eli Lilly & Co (NYSE:LLY) is in the spotlight, after the pharmaceutical concern reported strong data from studies involving diabetes drugs Trulicity and Jardiance. At last glance, LLY was up 2.9% to trade at $310.21. 

Today's pop has the stock climbing back toward its May 27, record high of $324.08, after bouncing off the ascending 20-day moving average. The 40- and 60-day trendlines linger below as close support, while the $300 level has also emerged as a floor. Eli Lilly stock is up 53.4% year-over-year, and has tacked on 12.2% so far in 2022. 

Of the 26 analysts in coverage, 18 carry a "buy" or better, while eight say "hold" or worse. Meanwhile, the 12-month consensus price target of $320.27 is just a chip-shot away from current levels. 

Despite the positive price action, puts are running at double the intraday average in the options pits, with 1,160 exchanged so far. Calls are still winning out on an absolute basis, however, with 1,333 across the tape this morning. The June 300 put is the most popular contract, followed by the weekly 6/10 205-strike put. 

The good news for prospective options traders is that Eli Lilly stock tends to outperform options traders' volatility expectations. This is per the equity's Schaeffer's Volatility Scorecard (SVS) of 99 out of 100.

 

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