LLY's Options Signal High Conviction: Calls at $1100 vs Puts at $1000 – Here's How to Play the GLP-1 Showdown

• LLY trades at $1067.02, down 0.94% from its intraday high of $1084
• Call open interest peaks at $1100 (5724 contracts) and $1200 (4019), while puts top at $1000 (2280)
• Bollinger Bands show price near lower band ($1040.58), but 30D MA at $1053.21 offers support

The options market is locked in a high-stakes tug-of-war between bulls and bears, with LLY’s GLP-1 dominance hanging in the balance.The Options Chessboard: Where Bulls and Bears Are Betting

LLY’s options chain tells a story of cautious optimism. This Friday’s call open interest spikes at $1100 (5724 contracts) and $1200 (4019), suggesting traders are hedging for a potential rebound above current levels. Meanwhile, puts at $1000 (2280) and $935 (142 next Friday) hint at defensive positioning. The near-even put/call ratio (0.96) shows balanced sentiment, but the heavy call OI at $1100 implies a psychological threshold: if LLY breaks above $1075 (30D support/resistance), bulls could push toward $1100. However, the $1000 put wall acts as a safety net for those fearing a drop below the 200D MA ($836). No major block trades today, so this is retail and institutional retail trading—no whale moves to signal sudden shifts.

News as Fuel: GLP-1 Wars Heat Up

The recent news cycle paints a mixed picture. Novo Nordisk’s oral GLP-1 launch is a direct threat to LLY’s injectable Mounjaro/Zepbound, which could pressure the stock short-term. But LLY’s $1B NVIDIA partnership and Ventyx acquisition signal long-term tech-driven growth. The Zepbound multi-dose pen approval (expected soon) might offset some near-term fears. Investors are pricing in both risks and rewards: the $1100 call wall reflects hope in LLY’s innovation, while the $1000 put OI mirrors doubts about valuation (P/E of 52.60). Think of it like a boxing match—each punch (news event) shifts momentum, but the fighters (LLY and Novo) are evenly matched.

Actionable Trades: Calls, Puts, and Precision Entries

For options traders, the most compelling setup is LLY20260116C1100 (this Friday’s $1100 call). If LLY closes above $1075 tomorrow, this strike could surge as the stock tests the $1100 level. A cheaper alternative: LLY20260123C1100 (next Friday) for a longer runway. On the bearish side, LLY20260116P1000 offers downside protection if the stock dips below $1040.58 (lower Bollinger Band). For stock players, consider entry near $1040.58 (lower band) with a target at $1075 (30D support) if the 30D MA holds. A tighter play: buy on a pullback to $1075.36 (30D support) with a stop below $1063 (intraday low).

Volatility on the Horizon: GLP-1 Showdown Ahead

LLY sits at a crossroads. The options market is pricing in a potential breakout above $1100 or a retreat toward $1000. The coming weeks will test whether LLY’s tech-driven partnerships can outpace Novo Nordisk’s oral drug threat. Keep an eye on the Zepbound pen approval—positive news could ignite a rally. For now, the key levels are clear: bulls aim for $1100, bears watch $1000. Trade with discipline, and let the data guide your next move.