Call Traders Swarm Surging Eli Lilly and Co (LLY)

Eli Lilly and Co reached a deal with Zosano Pharma Corp. today

Digital Content Group
Dec 2, 2014 at 2:19 PM
facebook X logo linkedin

Eli Lilly and Co (NYSE:LLY) is surging on an agreement to develop Zosano Pharma Corp.'s osteoporosis treatment, ZP-PTH. At last check, the shares were 3% higher at $70.57, after earlier reaching a 10-year peak of $70.77. Not surprisingly, calls are flying off the shelves at quadruple the normal intraday clip, and short-term strikes are being targeted, as LLY's 30-day at-the-money implied volatility (IV) has risen 4.2% to 15%.

Digging deeper, the pharmaceutical giant's most active option is the weekly 12/5 68.50-strike call, where north of 2,400 contracts have been exchanged. More than three-quarters have crossed at the ask price, and volume outstrips open interest, collectively hinting at buy-to-open activity.

Traders paid a volume-weighted average price (VWAP) of $1.31 for the in-the-money calls. As such, breakeven at this Friday's close -- when the weekly series expires -- is $69.81 (strike plus VWAP). As alluded to, Eli Lilly and Co (NYSE:LLY) is presently perched above this level, suggesting today's buyers are already staring at potential paper profits.


Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!




Rainmaker Ads CGI