Per a news release, Eli Lilly's Zepbound is more effective than Novo Nordisk's Wegovy
The weight-loss drug market is about to get even more crowded. Eli Lilly & Co (NYSE:LLY) stock is up 2.2% at $830.80, after a news release reported the company's weight-loss drug Zepbound rivaled Novo Nordisk's (NVO) Wegovy in a head-to-head trial. The treatment achieved an average weight loss of 20.2% at 72 weeks in adults with obesity without diabetes, while its rival managed 13.7%.
Eli Lilly stock has been rebounding since its early-November nine-month lows, now headed for its sixth win in the last seven sessions. The overhead 40-day moving average appears to be keeping a cap on today's gains, however. Since the start of the year, the equity is up 42.7%.
Though calls are still winning out on an absolute basis, puts have been much more popular than usual in the options pits. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), LLY's 50-day put/call volume ratio of 0.92 ranks higher than 93% of readings from the past year.
Options look like a good way to go when weighing in on the drugmaker. The security's Schaeffer's Volatility Index (SVI) of 35% ranks in the low 25th percentile of its annual range, meaning options traders are pricing in low volatility expectations at the moment.