A trader is betting that shares of Eli Lilly will hold current levels in the near term.
LLY is down 0.46 percent to $40.80 today. The pharmaceutical company's shares remain in the middle of their recent range but have been generally trending higher from support at $38.50 since mid-April.
More than 15,000 June 40 puts have traded against open interest of 5,340 contracts so far, according to optionMONSTER's systems. Institution-size blocks, including one for 9,090, were sold for $0.25.
The put selling is a bet that LLY will hold above the $40 strike price in the next two weeks, a level that the stock has stayed above since the company's earnings report in late April. The trader also faces the prospect of having to buy the shares if they trade below that price. (See our Education section)
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Lilly sees put buying before earnings
April 24, 2013
A large trader is positioning for a potential drop in the pharmaceutical giant by buying puts ahead of the company's earnings report this morning.
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