4 Trade Ideas for Eli Lilly: Bonus Idea

• Posted by Greg Harmon
• on November 28th, 2022

Here is your Bonus Idea with links to the full Top Ten:

Eli Lilly, $LLY, comes into the week approaching resistance. As it rises toward the all-time high the Bollinger Bands® are shifting to the upside. The RSI is rising in the bullish zone and the MACD is leveling after resetting lower in positive territory. There is no resistance above 369. Support lower comes at 358.50 and 350 before 344 and 335. Short interest is moderate at 6.6%. The stock pays a dividend with an annual yield of 1.07% and has traded ex-dividend since November 14th. The company is expected to report earnings next on February 1, 2023.

The December options chain shows the biggest open interest at the 360 put strike but with open interest 3 times bigger in the 380, 370 and 390 calls. In the January chain the open interest is spread from 360 to 270 on the put side, biggest from 310 to 280. On the call side it is spread from 270 to 400. The February chain covers the earnings report and has biggest open interest at the 350 put and the 450 call.

Eli Lilly, Ticker: $LLY

Trade Idea 1: Buy the stock on a move over 369 with a stop at 358.50.

Trade Idea 2: Buy the stock on a move over 369 and add a December 365/355 Put Spread ($4.35) while selling the January 400 Call ($4.15).

Trade Idea 3: Buy the December/February 380 Call Calendar ($12.05) and sell the January 330 Put ($3.50).

Trade Idea 4: Buy the February 330/370/390 Call Spread Risk Reversal ($1.90).

Premium Content

The Best

The Rest Premium

Free Content

The Rest

If you like what you see sign up for more ideas and deeper analysis here Get Premium with special holiday discounts.   

After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into the last month of the year, equity markets showed continued strength as they continued higher.

Elsewhere look for Gold to continue to digest its move to the upside while Crude Oil continues lower. The US Dollar Index continues to move to the downside while US Treasuries bounce in their downtrend. The Shanghai Composite looks to pause in its short term uptrend while Emerging Markets bounce in their downtrend.

The Volatility Index is back at normal levels making the path easier for equity markets to the upside. Their charts look strong, especially on the longer timeframe with the SPY leading the charge higher. On the shorter timeframe things look messier with both the QQQ and IWM in a consolidation while the SPY breaks higher. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus