LLY's Options Signal Bullish Bias: Target $900 Calls as Earnings Approach

• LLY trades at $818.21, up 0.7% with a bullish engulfing pattern on the charts.

• Call open interest dominates at $900 and $1000 strikes, while puts cluster near $770.

• Earnings on October 30 could amplify volatility as orforglipron regulatory submissions loom.

• Bollinger Bands suggest a $723–$891 range, but options activity hints at a breakout above $820.

The stock isn’t just moving—it’s telling a story. And right now, the script is bullish. With options data and technicals aligning, LLY looks primed for a push toward $900. Let’s break down why this matters for your portfolio.Bullish Calls Dominate as Puts Guard the Floor

Options traders are clearly leaning into the upside. The $900 and $1000 call strikes (OI: 6114 and 2571 for Friday expiration) show heavy positioning, while next Friday’s $1000 call (OI: 2168) reinforces this theme. These strikes act like a magnet for capital—think of them as the ‘gravity well’ where big money expects a landing.

On the downside, puts at $770 (OI: 913) and $780 (OI: 740) offer a safety net. But here’s the kicker: the put/call ratio for open interest is just 0.83, meaning calls outnumber puts by 18%. That’s not just noise—it’s a vote of confidence.

No block trades to complicate things, so we’re dealing with retail and institutional bets that are broadly aligned. The risk? If the stock stumbles below $800 (lower Bollinger Band at $723 is a stretch), those puts could become a lifeline. But for now, the momentum is clearly to the upside.News Fuels the Bull Case

Eli Lilly’s pipeline is firing on all cylinders. Orforglipron’s 10.5% weight loss results and Verzenio’s 15% mortality reduction in breast cancer are more than headlines—they’re revenue catalysts. The market’s reaction? A 0.63% pop in LLY after the orforglipron data.

But here’s what’s underappreciated: the $6.5 billion Houston manufacturing plant isn’t just about scaling production. It’s a signal that Lilly is betting big on its obesity and diabetes drugs. When you pair that with the $3.1 billion Verve Therapeutics acquisition, you’ve got a company that’s not just defending its turf—it’s expanding it.

Investor perception? Optimistic. The $15 billion share buyback and $1.50 dividend show management isn’t complacent. They’re rewarding shareholders while building for the future. That kind of balance is rare—and it’s fueling the call buying frenzy.

Trade Ideas: Calls for the Win, Stock for the GrindFor options traders: The $900 call (Friday expiration) is a no-brainer. With LLY at $818, you’re paying a premium, but the $900 strike is just 10% away. If the stock cracks $820 (intraday high), this call could take off. For a longer play, the $1000 call (next Friday) offers leverage if the stock surges post-earnings.For stock buyers: Look to enter near $806.93 (middle Bollinger Band) if the stock dips. Your first target is $823 (intraday high), then $890 (upper Bollinger). Stop-loss at $754 (30D support).Bearish hedge: A put spread at $770/$780 could protect against a pullback. Buy the $770 put and sell the $780 put to cap losses.Volatility on the Horizon

Earnings on October 30 will be the next catalyst. If orforglipron’s regulatory timeline accelerates, LLY could test $900. But don’t ignore the risks: a failed trial or pricing pressure in Europe (Kisunla’s approval there) could trigger a sell-off.

Final Takeaway

LLY is a stock where fundamentals and options sentiment are in sync. The call-heavy positioning and bullish technicals suggest a breakout is coming. But stay nimble—this isn’t a straight line to $1000. Watch the $820 level like a hawk. If it holds, the $900 calls become a goldmine. If it breaks, the puts at $770 could save the day. Either way, the next few weeks are going to be eventful.