LLY's Options Signal Bullish Momentum: Key Strike Levels and Trade Setups for Q4

• Eli Lilly (LLY) reports a 54% revenue surge to $17.6B, driven by Mounjaro and Zepbound
• Options data shows 5159 open interest at the $965 call strike (Friday expiry) vs 2063 puts at $865
• RSI near overbought territory (78.9) while price trades above all major moving averages
• Analysts target $938.61 average price, just 1% above current levels

Here's what I'm seeing: LLY's options market is painting a clear picture of bullish conviction. With call open interest outpacing puts by 1.2:1 and key resistance levels primed to break, this stock looks like a rocket ship with its nose cone already off. Let's break down why traders should be paying attention to these numbers and what the roadmap to $1000 might look like.

Where the Money Is Flowing: Options Imbalance and Strategic Strike Levels

The options chain tells a compelling story. For Friday expiry, the $965 call has 5159 open contracts—nearly triple the next highest strike. That's not just noise; it's a crowd of smart money betting on a breakout. Meanwhile, puts are clustered below current price at $865 (2063 OI) and $867.50 (1971 OI).

This setup suggests two things: first, institutional players are hedging against a pullback to $865 support. Second, the call skew indicates strong conviction above $965. Think of it like a tug-of-war where the rope is tied to $929—the current price. The calls are the team pulling hard to the right.

News That Fuels the Fire: Earnings, Guidance, and Pipeline Momentum

LLY's Q3 results weren't just good—they were explosive. $17.6B revenue (up 54%) and $7.02 EPS (beating by 9.3%) show this isn't a one-quarter miracle. The real kicker? They raised full-year guidance to $23-$23.70 EPS and announced $1B in dividends plus $700M buybacks.

But here's what gets me excited: four positive Phase 3 trials for orforglipron and new FDA approvals. This isn't just earnings-driven momentum—it's a product pipeline that keeps giving. Retail investors might be buying calls not just for the next quarter, but for the next year of innovation.

Actionable Trade Setups: Calls, Bets, and Price Targets

For options traders: Buy the $965 call (Friday expiry) if LLY breaks above today's intraday high of $949.89. The 5159 OI at this strike creates a self-fulfilling prophecy—big moves often follow heavy open interest. Alternatively, a call spread between $965 and $1000 could cap risk while still capturing upside.

Stock traders: Consider entries near $920 if the 30D support (824-828) holds. First target is the $965 call-heavy zone, with a stretch target at $1000. Use the $865 put cluster as a stop-loss reference—if price drops below $880, reevaluate.

Volatility on the Horizon: What to Watch for Q4

The RSI at 78.9 hints at overbought conditions, but LLY's fundamentals justify the run. My watchlist includes:

• Breakout above $965 (key call strike)
• Hold above $865 support (put cluster)
• FDA decisions on orforglipron submissions
• Dividend ex-date on Dec 10th

This isn't a binary bet—it's a multi-layered opportunity. The options market is pricing in a $1000+ future, and the fundamentals are sprinting toward that goal. But remember, even rockets need fuel. If earnings momentum slows or the FDA disappoints, those $965 calls could turn into firecrackers. Stay nimble, keep stops tight, and let the data guide your next move.