Schaeffer's Top Stock Picks for '25

Are Eli Lilly and Company (LLY) Bulls Playing Buyout Buzz?

Eli Lilly and Co (NYSE:LLY) is moving higher amid M&A speculation

May 1, 2015 at 3:10 PM
facebook X logo linkedin


Eli Lilly and Co (NYSE:LLY) is up 1.9% today to trade at $73.23, with some sites citing unsubstantiated takeover chatter. Options traders are stepping up, with calls crossing at four times the normal intraday volume, outpacing puts by a margin of more than 8-to-1. Leading the way are the weekly 5/1 73- and 73.50-strike calls, which it appears traders are buying to open. Traders are looking for gains above the respective strikes before the contracts expire at today's close. LLY peaked at $73.33 today.

Slightly longer-term bulls are seemingly buying to open the 5/8 73-strike call and the May 75 call. The calls will be in the money if LLY is perched atop the strikes by the options' respective expiration dates of Friday, May 8, and Friday, May 15 -- both of which encompass the company's annual shareholder meeting on Monday.

Looking back, these call-focused traders are commonplace in LLY's options pits. Specifically, the stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 3.02 ranks higher than 87% of readings from the past 12 months, indicating calls have been bought to open over puts at a faster-than-usual rate.

Analysts aren't so sure about the stock, which has outperformed the broader S&P 500 Index (SPX) during the past two months, and has added roughly 22% during the past year. Of the 12 brokerage firms with coverage on Eli Lilly and Co (NYSE:LLY), six rate it a "hold."

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

10 Stock Picks FREE
 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter