Eli Lilly Stock Surges on Weight-Loss Drug Trial Success

Core Insights - Eli Lilly & Co's stock is experiencing a significant increase, up 13.4% to $838.48, following positive phase 3 trial results for its weight-loss drug, orforglipron, which achieved nearly 8% weight loss at the highest dose and improved blood sugar levels in type 2 diabetes patients [1] Group 1: Stock Performance - Today's stock surge has allowed Eli Lilly to fully recover from an early April bear gap, returning to positive territory for 2025 [2] - The stock's 14-day relative strength index (RSI) of 30 indicates it was overdue for a bounce, suggesting it was in "oversold" territory [2] - Shares are facing resistance at the $840 level, which coincides with several long-term moving averages [2] Group 2: Options Activity - In the options market, Eli Lilly has seen a significant increase in activity with 45,000 calls and 35,000 puts traded, which is eight times the stock's average daily options volume [3] - The most popular options expiring today are the April 800 put and 900 call, with new positions being opened for both [3] - A shift in sentiment is indicated by the preference for calls, as the 10-day put/call volume ratio of 1.01 is higher than 87% of readings from the past year, showing a faster-than-usual accumulation of puts in the last two weeks [4]