Eli Lilly and Company (LLY) Option Bull Gets More Ambitious

Eli Lilly and Co (LLY) is scheduled to report drug data on Monday

Jun 12, 2015 at 11:22 AM

Eli Lilly and Co (NYSE:LLY) is off 2.5% at $84.44, ahead of Monday's highly anticipated (albeit limited) trial results on Alzheimer's treatment solanezumab. The pharmaceutical stock's options pits are busy, too, with intraday volume at nearly four times the norm.

One of the session's notable trades involved matching sweeps of 252 June 85 and July 87.50 calls. Data from the International Securities Exchange (ISE) confirms sell-to-open activity at the former and buy-to-open at the latter, suggesting the speculator is rolling out and up his bullish bet -- counting on LLY to take out $87.50 by the close on Friday, July 17, when back-month options expire.

Elsewhere on the Street, the brokerage bunch is split in its outlook. Six analysts currently consider LLY a "buy" or better, while another five rate it a "hold." Also, the stock's average 12-month price target of $79.71 is below current trading levels.

All things considered, Eli Lilly and Co (NYSE:LLY) could benefit from upgrades and/or price-target hikes. Even after today's drop, the shares sport a year-to-date lead of more than 22%, and touched a 14-year high of $87.24 yesterday.

Follow @Schaeffers

The $25K Day Trading Barrier is Gone

The long-standing Pattern Day Trader (PDT) rule that required many traders to maintain a $25,000 account balance is no longer standing in the way.

That means more traders can actively pursue short-term opportunities without the barrier that kept so many on the sidelines.

Now it's all about having the right strategy.

Dynamite Day Trading Signals helps you hit the ground running with up 2 options trade alerts per week, built to capture fast-moving opportunities.

👉 Sign up now to receive the next trade