Market Overview

Tony Zhang's Eli Lilly Trade

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On CNBC's "Options Action," Tony Zhang recommended a bullish options trade in Eli Lilly And Co (NYSE: LLY). He said the stock has been underperforming the broader markets and the health care sector for the last few months, but it has recently broken out above the $155 price level and it broken its downtrend.

Zhang wants to buy the December $155/$170 call spread for a total cost of $5.50. The trade breaks even at $160.50 and it can make a maximal profit of $9.50. If the stock trades substantially higher in the near term, Zhang is going to roll his position to the $170/$190 level.

 

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Posted-In: CNBC Options Action Tony ZhangOptions Markets Media

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