LLY Iron Condor Can Make 51% in Next 6 Days

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This LLY Iron Condor Could Turn 51% Profit in 6 Days

Outlook is neutral, with stock confined to a range of ±2%

Strategy has +51% ROI potential and 15% overvalued

Buy825 Put
Sell855 Put
Sell890 Call
Buy920 Call

Eli Lilly And Company share price has not moved much today, and currently sits at $866.50. Over the last two weeks, the stock has traded between $802.09 and $882.14. Implied volatility for LLY is down -0.6% today and sits below its 20-day moving average, indicating the market's forecast towards lower volatility. Based on historical stock price behavior, this spread for LLY has a theoretical 70% success rate.

Option Profit Calculator for LLY Iron Condor at 21-Jun-24 Expiration

If LLY stock price at expiration is between $855.00 and $890.00, this spread has a 51% upside potential

As you can see in the chart above, the optimal outcome is for LLY stock price to close between $855.00 and $890.00 at the June 21, 2024 expiration. Within that price range, all of the options will expire worthless, and you'd keep the original $10.07 credit you received at the time of the trade.

The maximum gain will be realized if the stock price is between $855.00 and $890.00. The maximum gain is $10.07

The maximum loss would occur if the stock price at expiration is below $825.00 or above $920.00. The maximum loss is $19.93

LLY Spread Current Market Price vs. Historical Average

LLY Iron Condor is trading at a 15% premium to historical average.

Using historical data to measure how a similar spread in LLY was priced in the market, the 4-year average value was 8.74, with a high mark of 18.92 and a low of 4.74.

Currently, this iron condor is bid at 10.07 and offered at 11.67. The midpoint of the spread is 10.87.

If we use 8.74 as our historical fair value benchmark, the current market bid price is at a 15% premium, while the current market midpoint represents a 24% premium.

Current PriceHistorical Values of Similar Iron Condors
Market Chameleon captures daily records of market data to calculate historical benchmarks and generate estimated values.

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NOTE: Stock and option trading involves risk that may not be suitable for all investors. Examples contained within this report are simulated And may have limitations. Average returns and occurrences are calculated from snapshots of market mid-point prices And were Not actually executed, so they do not reflect actual trades, fees, or execution costs. This report is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither Market Chameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades. You can read more about option risks and characteristics at theocc.com.

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