Quantchabot has detected a new Bull Call Spread trade opportunity for ELI LILLY (LLY) for the 25-Apr-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LLY was recently trading at $842.97 and has an implied volatility of 41.85% for this period. Based on an analysis of the options available for LLY expiring on 25-Apr-2025, there is a 34.37% likelihood that the underlying will close within the analyzed range of $843.87-$900.29 at expiration. In this scenario, the average linear return for the trade would be 10.01%.
Big 14.71% Change: After closing the last trading session at $734.90, ELI LILLY opened today at $840.80 and has reached a high of $858.00.
Trade approach: A movement as big as 14.71% is a significantly bullish indicator, so this trade is designed to be profitable if LLY maintains its current direction and does not revert back to pricing on the bearish side of $842.97 on 25-Apr-2025. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if ELI LILLY closes at or above $838.00 on 25-Apr-2025. Based on our risk-neutral analysis, there is a 54.32% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.
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