LLY Options Signal Bullish Momentum: Calls at $1200 Dominate as Analysts Hike Targets—Here’s How to Play the Breakout

• Eli Lilly (LLY) trades at $1,042.83, down 1.8% from its previous close amid a volatile session.
• Options market shows heavy call open interest at $1,200 and $1,100 strikes, while puts cluster at $1,000 and $650.
• Analysts from Goldman Sachs and Bank of America raised price targets to $1,145–$1,268, citing GLP-1 dominance and trial wins for retatrutide.

Here’s the takeaway: LLY’s options activity and news flow suggest a high-probability upside breakout, but traders must watch for short-term profit-taking. The stock’s technicals and analyst optimism align with a bullish case—if it can hold key support.

Bullish Calls at $1,200 Signal Big Bets on a Rally

The options chain tells a clear story. For this Friday’s expiration (Dec 19), the LLY20251219C1200 call option leads with 4,230 open contracts, followed by the LLY20251219C1100 at 3,038. This suggests institutional players are pricing in a sharp move above $1,200—possibly driven by the recent retatrutide trial results and analyst upgrades. Meanwhile, puts at $1,000 (1,653 OI) and $650 (1,309 OI) hint at cautious hedging, but the put/call ratio of 0.84 (calls dominate) reinforces the bullish tilt.

The risk? A breakdown below Bollinger Bands’ lower band at $970.48 would trigger panic. But with support levels at $1,039.96 (middle band) and $922.14 (30D support), the stock has multiple rungs to catch a pullback.

News Flow Fuels Optimism, But Competition Looms

Eli Lilly’s recent headlines are a mixed bag. The Phase 3 success of retatrutide and price cuts for Zepbound signal strategic flexibility in the GLP-1 space, while analyst upgrades (Goldman Sachs, Bank of America) push price targets higher. However, patent cliffs for Mounjaro/Zepbound and rising competition from Novo Nordisk and Pfizer add long-term uncertainty.

Investor sentiment is split: Institutional buyers added 4.99M shares in Q3, but insiders like ENDOWMENT INC LILLY sold 3.39M. The key question is whether the market will reward Lilly’s innovation or punish its reliance on a narrow product portfolio.

Actionable Trades: Calls, Puts, and Stock Entries

For options traders, the LLY20251219C1100 and LLY20251226C1100 (next Friday’s expiration) offer compelling setups. If LLY breaks above its intraday high of $1,068.23, consider buying the LLY20251219C1100 at a strike 6% out of the money. A close above $1,050 would validate the move. For downside protection, the LLY20251219P1000 could cap losses if the stock dips below $1,040.

Stock traders should look to enter near $1,040 if support holds. A break above $1,068.23 (intraday high) targets $1,090–$1,120. A breakdown below $1,039.96 (middle Bollinger Band) would shift the bias to $1,000–$970. Use tight stop-loss orders given the high volatility.

Volatility on the Horizon: Watch the J.P. Morgan Conference

The coming weeks will test LLY’s momentum. The J.P. Morgan Healthcare Conference in January could unlock strategic updates, while ongoing GLP-1 competition and pricing pressures will shape the narrative. For now, the options market and technicals lean bullish—but don’t ignore the risks of overvaluation. If you’re in, manage your positions aggressively. If you’re on the sidelines, patience is key until the $1,040–$1,050 range resolves.