Eli Lilly (LLY) Offering Possible 6.84% Return Over the Next 9 Calendar Days

Eli Lilly's most recent trend suggests a bearish bias. One trading opportunity on Eli Lilly is a Bear Call Spread using a strike $157.50 short call and a strike $162.50 long call offers a potential 6.84% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $157.50 by expiration. The full premium credit of $0.32 would be kept by the premium seller. The risk of $4.68 would be incurred if the stock rose above the $162.50 long call strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Eli Lilly is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Eli Lilly is bearish.

The RSI indicator is at 27.94 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Eli Lilly

Omeros Reports Coronavirus Treatment Success; Stock Soars
Mon, 10 Aug 2020 13:01:23 +0000
Small Omeros on Monday reported success with a test of its corononavirus treatment, saying it helped the recovery of six patients severely ill with Covid-19.

Eli Lilly, Innovent Deliver Encouraging Lung Cancer Data For Sintilimab
Mon, 10 Aug 2020 07:02:46 +0000
Eli Lilly (LLY) and Innovent Biologics have announced encouraging interim analysis data from ORIENT-11 at the virtual IASLC World Conference on Lung Cancer (WCLC) 2020.The randomized, double-blind, Phase 3 clinical trial of 397 patients assessed TYVYT (sintilimab injection) with ALIMTA (pemetrexed) and platinum chemotherapy as a first-line treatment for nonsquamous non-small cell lung cancer (nsqNSCLC) without sensitive EGFR mutation or ALK rearrangement.Based on interim analysis by an independent committee, the treatment demonstrated a statistically significant improvement in progression-free survival (PFS) compared with placebo, which met the pre-defined efficacy criteria.After a median follow up of 8.9 months, the median PFS of the sintilimab combination and the placebo combination assessed by the Independent Radiographic Review Committee (IRRC) was 8.9 months and 5.0 months, respectively. The median overall survival (OS) was not reached in both groups, but OS showed an improvement favoring the sintilimab combination. Confirmed objective response rate was improved from 29.8% to 51.9%, and the sintilimab combination showed a shorter time to response (1.51 months vs 2.63 months for the placebo combination).The safety profile was consistent with previously reported sintilimab studies, and no new safety signals were identified.National Medical Products Administration (NMPA) of China has accepted the supplemental New Drug Application (sNDA) for this indication.Dr. Li Wang, Senior VP of Lilly China, stated: “With these encouraging results of ORIENT-11, sintilimab may soon be able to expand its indication to the first-line treatment of non-squamous NSCLC. We look forward to its potential approval in China, with the goal of helping more patients with lung cancer and giving these patients and their families hope of a longer life.”Indeed, lung cancer is a malignancy with the highest morbidity and mortality in China. NSCLC accounts for about 80 to 85% of lung cancer. About 70% of NSCLC in China is the nonsquamous subtype and 50% of nsqNSCLC is without sensitizing EGFR mutations or ALK rearrangements. These patients do not respond well to targeted therapy and there are limited treatment options available to them.TYVYT (sintilimab injection) is being jointly developed in China by Innovent and Lilly, and has already been granted marketing approval for relapsed or refractory classic Hodgkin’s lymphoma after systemic chemotherapy. It is a type of immunoglobulin G4 monoclonal antibody, which binds to PD-1 molecules on the surface of T-cells and reactivates T-cells to kill cancer cells.Shares in LLY are up 16% year-to-date and analysts have a cautiously optimistic Moderate Buy consensus on the stock’s outlook. That’s alongside a $173 average analyst price target (13% upside potential).“We see Lilly as a best-in-class story but have remained Neutral on the stock given the premium multiple at which it has been trading” commented Mizuho Securities analyst Vamil Divan on August 3, after the company delivered an ‘admittedly messy 2Q20.’ Results were negatively impacted by the COVID-19 pandemic but boosted by higher Other Income, lower expenses and a lower tax rate.Divan has a $164 price target on LLY, but notes that he could become more constructive on the stock ahead of upcoming catalysts if the current weakness persists. (See LLY stock analysis on TipRanks).Related News: Amarin’s Vascepa To Take Part In Covid-19 Study In Adults With Heart Disease Moderna Secures $400M In Deposits For Supply Of Covid-19 Vaccine Candidate Novavax Pops 15% On ‘Positive’ Early Trial Data From Covid-19 Candidate More recent articles from Smarter Analyst: * AstraZeneca Strikes First China Manufacturing Deal For Covid-19 Candidate * Regeneron Prices $1.25B Public Offering; Analyst Cautious On Valuation * Cisco Completes ThousandEyes Deal; Analyst Warns Of Growth Headwinds * Roper Looking To Snap Up Vertafore For $5.5 Billion- Report

Eli Lilly and Company (NYSE:LLY) Looks Interesting, And It's About To Pay A Dividend
Sat, 08 Aug 2020 14:11:42 +0000
Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Eli Lilly…

Pharma ETFs Soar on Robust Q2 Earnings
Fri, 07 Aug 2020 16:45:04 +0000
Total earnings of 66.4% of the healthcare market capitalization that has reported so far are up 4.4% on revenue growth of 4%.

Pharma Stock Roundup: ABBV, MRK Q2 Earnings & Coronavirus Updates in Focus
Fri, 07 Aug 2020 15:30:03 +0000
Sanofi (SNY)/Glaxo (GSK) and J&J (JNJ) sign deals with U.S. government for coronavirus vaccine candidate. Several drugmakers announce second-quarter results.

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