Eli Lilly's 7% Share Price Jump Spurs Heavy Buying of Call Options

The stock climbed to $29.30 around noon Thursday after the company raised its full year revenue outlook by about $3 billion, surpassing even the most optimistic analyst estimate and delivered top and bottom-line results for the second quarter that blew past Wall Street expectations.

The financial results were buoyed by strong sales of weight-loss drug Zepbound, diabetes medication Moujaro and breast cancer treatment Verzenio, the company said in its earnings release Thursday morning.

Call options that give the holders the right to buy the stock at $900 attracted the biggest volume across 17 expiration dates stretching through Dec. 18, 2026.

The largest U.S. drug company by market capital raised its full year revenue guidance to a range of $45.4 billion to $46.6 billion. That exceeded analyst estimates that range from $42 billion to $44.69 billion, according to data compiled by Capital IQ. $Eli Lilly also boosted its adjusted earnings forecast to $16.10 to $16.60, from a range of $13.50 to $14. That's better than even the highest analyst estimate of $14.36.

For the three months ended June 30, revenue climbed 36% to $11.3 billion, surpassing even the highest analyst estimate that called for $10.48 billion. Adjusted EPS expanded 86% to $3.92, beating the most optimistic estimate that called for $3.22.

After Thursday's stock rally, the technical indicators are flashing no obvious signal on the stock, with only one of the 15 implying that the stock could be overbought and may be trending bearish, while two are leaning bullish.

Data tracked by moomoo showed that the daily fund inflows into Eli Lilly outpaced outflows by $28 million. That reversed the capital trend for the stock this month, leading to a net inflow of $27 million.

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