The company's obesity drug candidate outperformed the competition
Eli Lilly And Co (NYSE:LLY) released mid-stage trial data earlier today showing its obesity drug candidate promoted weight loss of up to 24.2% after 48 weeks, beating competitors' results. The update comes as the weight-loss treatment market is reportedly expected to reach $100 billion by 2030. Additionally, the company declared a dividend of $1.13 per share for the third quarter.
In response, Barclays hiked LLY's price target to $500 from $420. More bull notes could be coming, given the security's 12-month consensus target price of $452.48 stands at a small discount to current trading levels.
Last seen up 0.7% at $455.75, Eli Lilly stock surged to an all-time high of $467.98 right out of the gate. The security is today eyeing its fifth win in six sessions, with long-time support from its 30-day moving average. Year-over-year, shares are up 39%.
Options volume is already running at double the intraday average volume, with 7,707 calls and 4,648 puts traded so far. The most popular contract is the weekly 6/30 470-strike call.
It's also worth noting that LLY boasts affordably priced premiums, per its Schaeffer's Volatility Index (SVI) of 23% that sits at the low 13th percentile of annual readings. In simpler terms, now looks like a great opportunity to bet on the equity's next moves with options.