Calls Bought on Eli Lilly (LLY)

Shares of Eli Lilly and Company (LLY) are trading lower on the session by 0.25%, at $52.72. The stock has been running higher for the better part of nine months, culminating in a push to fresh yearly highs last week.

Despite the stock’s recent move, upside calls are active on LLY today. A short while ago the January 2013 $55.00 call was purchased 10,000 times, on the offer, for $0.85. With open interest of 12,892 contracts, it is unclear whether this is opening or closing positioning at this time.

LLY normally trades 20,000 calls per session, so the above trade is notable at half normal daily volume.

30-day implied volatility is up 3.2% today to 21.41%; 10-day realized vol is registering 39.77%. At $0.85, The Jan13 $55 calls traded at 19% vol.

Eli Lilly and Company discovers, develops, manufactures, and sells products, in one business segment, pharmaceutical products. 

About Michael Zerinskas

Originally from Chicago, Michael J. Zerinskas began his career as an intern for a small high-frequency trading firm based at the CME; he then moved on to become Chief Options Strategist at Benzinga.com. Michael is now Unusual Activity Editor at The Options Insider, specializing in VIX, volatility, and flagging unusual activity.