Eli Lilly and Co. (LLY) Unusual Options Activity Reaps Profits

Eli Lilly and Co. (LLY) develops, manufactures, and sells products in two business segments; human pharmaceutical products and animal health products. LLY is trading at $78.19 around the upper end of its 52 week range of $58.50-$79.55. Year to date the stock has outperformed the market rallying,13.73%. The stock ripped up today by about 2.33% or $1.78.

Early in the session a trader bought 3,100 of the LLY June 80.0 Calls for $0.38 when the stock was trading at $77.81. This order was recorded about an hour after the open on OptionHacker, and the stock rose about $1.78 to $79.97 after the trade hit the tape. Over 9,900 contracts have been traded today hinting at bullish sentiment. The LLY June 80.0 Calls for $0.38 have traded as high as $1.15 today making this a profitable trade. This trader is most likely establishing a long position expecting the stock to continue its bullish trend for a few weeks. This stock has been trading above the Ichimoku Cloud for a few weeks now. The Ichimoku Cloud continues to grow and points the technical analysis in the direction of a bullish trend due to an increasing cloud size indicating a hard to reverse trend.

Trade: A trader bought 3,100 of the LLY June 80.0 Calls for $0.38
Risk: $38 per 1 lot
Breakeven: $78.57

If a trader bought a 20 lot of these puts they would have profited $1,540 at the highs on $760 in risk. This is a great example of profitable UOA.

Andrew Keene

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