Eli Lilly Stock Stumbles on FDA Rejection

Options Bears are targeting LLY at double the intraday average

Deputy Editor
Jan 20, 2023 at 11:15 AM
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The U.S. Food and Drug Administration (FDA) rejected the accelerated approval of Eli Lilly and Co's (NYSE:LLY) experimental Alzheimer's drug due to a lack of enough trial data from patients treated for at least a year. Jefferies called this setback a "modest positive" for rival Biogen (BIIB). 

At last glance, Eli Lilly stock was down 1.2% at $347.01, earlier as low as $344.58. The stocks 100-day moving average kept losses in check, however. Year-over-year, LLY is outperforming with a 42.7% year-over-year lead. 

The majority of analysts are bullish on LLY, with 14 of the 16 in coverage carrying a "buy" or better rating. Plus, the 12-month consensus price target of $389.52 is a 12.3% premium to current levels. 

Options bears are targeting LLY after today's news. So far, 3,121 puts have been exchanged, which is double what's seen at this point. The weekly 3/3 320-strike put is the most popular, where new positions are being sold to open. 

 

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