LLY is headed for its best day in over a year
Eli Lilly & Co (NYSE:LLY) stock is headed for its best day since August 2023, last seen up 13.4% at $838.48 at last check, after the pharmaceutical giant reported positive results for a phase 3 trial of its weight-loss drug, orforglipron. The experimental pill resulted in weight loss of nearly 8% at the highest dose, and lowered blood sugar in patients with type 2 diabetes.
Today's pop helped Eli Lilly stock fully recover from its early April bear gap, and has it back in positive territory for 2025. LLY was overdue for a bounce, as its 14-day relative strength index (RSI) of 30 sits just in "oversold" territory. The shares are now grappling with familiar pressure at the $840 level, which is home to a confluence of long-term moving averages.
Over in the options pits, LLY has seen 45,000 calls and 35,000 puts cross the tape so far today, which is already 8 times the stock's overall average daily options volume. Expiring today, the April 800 put and 900 call are the most popular, with new positions opening at both.
This penchant for calls shows a shift in sentiment. LLY's 10-day put/call volume ratio of 1.01 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 87% of readings from the past year, showing puts were picked up at a faster-than-usual rate in the last two weeks.