LLY's Options Signal $1,100 Bullish Bet: How to Ride the Wave Before Friday Expiry

• LLY trades at $1,029.11, up 0.76% with volume surging to 2.13M shares
• Options data shows 10,631 open interest at the $1,100 call strike (this Friday's expiry)
• RSI near overbought territory (89.6) while Bollinger Bands suggest $730–$1,032 range

Here's the deal: LLY's options market is screaming 'bullish breakout' while technicals hint at a potential short-term ceiling. The stock's 4.5% surge this week isn't just about fundamentals—it's a calculated options-driven rally with clear entry/exit signals for traders.

Bullish Sentiment Locked in $1,100 Strike

Options traders are loading up on the $1,100 call strike with 10,631 contracts in open interest—nearly double the next closest call at $1,040 (9,740 OI). This isn't random. When you see such a lopsided call/put ratio (0.806 for open interest), it means smart money is betting on a sharp move above $1,030.

The $1,100 level becomes critical. If LLY breaks through its intraday high of $1,033.51, those call buyers will likely push the stock toward that strike. But don't ignore the risks: RSI at 89.6 means a pullback is technically overdue. Watch the $817–$821 support zone from 30D data—if the stock drops below $820, the bullish narrative cracks.

Block trading is quiet this week, which is interesting. No big institutional moves to skew the odds. That means retail and institutional options players are in sync—both sides are betting on a controlled rally.

News Flow Fuels the Fire

Let's connect the dots. Eli Lilly's Medicare coverage deal for Zepbound alone could add 40M patients to its existing 8.5M. That's not just good news—it's a market expansion play. Analysts at Leerink just upgraded the stock to "Outperform" with a $1,104 price target, almost matching that $1,100 call strike.

The $12.7B manufacturing investment? That's a long-term play, but it signals confidence. And the gene therapy deal with MeiraGTx? Diversification at scale. Investors aren't just buying a stock—they're buying a multi-pronged growth story.

But here's the catch: Novo Nordisk's recent leadership shakeup and failed Metsera bid mean competition is faltering. Lilly's pricing cuts for Medicare beneficiaries are smart—they broaden access without sacrificing margins. This is the kind of strategic play that turns skeptics into believers.

Actionable Trade Setups

For options traders:

• This Friday: Buy the $1,040 call (OI: 9,740) with a stop below $1,020. Target $1,060 if the stock breaks $1,033.50
• Next Friday: Buy the $1,080 call (OI: 4,297) as a longer-term play. This gives you time for the Medicare rollout to gain traction

For stock buyers:

• Entry: Consider buying near $1,020–$1,025 if the stock pulls back to the 30D moving average ($865.51) but stays above $821 support
• Targets: $1,060 (Bollinger Band upper bound) and $1,100 (options strike cluster)
• Stop: Below $816.31 (200D support zone)

Bearish players could sell the $990 put (OI: 812) as a hedge if they're long the stock. But with RSI at 89.6, a pullback to $980 would be a buying opportunity, not a death knell.

Volatility on the Horizon

The next 72 hours will be telling. If LLY holds above $1,020, the $1,100 call strike could become a self-fulfilling prophecy. But if RSI cracks 60 or volume drops below 1.5M, the rally might stall. Either way, the options market has already priced in a $1,100 move—now it's about execution.

This isn't just a stock trade. It's a masterclass in how options sentiment, technical levels, and strategic news can align. The question isn't whether LLY can get to $1,100—it's whether you're ready to ride the wave when it does.