LLY Eli Lilly (LLY) options offer exposure to the GLP-1 weight-loss drug revolution with high share price, significant FDA catalyst risk, and pharma-specific dynamics.

LLY's dominance in GLP-1 drugs (Mounjaro/Zepbound) creates unique binary catalysts around FDA decisions, trial data, and competitive developments.

LLY Options Characteristics

Avg Daily Volume

300K+ contracts

Typical Spread

$0.10-0.50

Typical IV Rank

25-50%

Expirations

Weekly, Monthly, Quarterly, LEAPS

Price Range

$700-900

Correlation

Moderate correlation with XLV and biotech sector

Best Strategies for LLY

Bull Call Spreads

Capital-efficient pharma growth exposure

Iron Condors

Defined risk on expensive underlying

Put Credit Spreads

Bullish income below strong support

Calendar Spreads

Trade around FDA catalyst dates

LEAPS Calls

Long-term GLP-1 market expansion thesis

GLP-1 Revolution Leader

Eli Lilly's high share price means options are expensive in absolute terms. Spread strategies are essential. FDA approvals and trial data can move the stock 5-15% in a single session.

LLY Options FAQ

Why are LLY options so expensive?

LLY's share price ($700-900) makes individual contracts costly. A single ATM call can cost $4,000+. Use vertical spreads or iron condors to manage capital. The IV is also elevated due to FDA and trial catalysts.

How do FDA decisions affect LLY options?

FDA approvals for new indications (obesity, Alzheimer's) can move LLY 5-15%. Options IV surges 2-3 weeks before PDUFA dates. Binary event strategies (straddles, risk reversals) are popular around these catalysts.