Increasing LLY YieldBoost from 0.6% to 6% Through Options Strategies
Dividend Predictability: Dividend amounts are generally unpredictable and fluctuate with company profitability; Eli Lilly's recent dividend yield is assessed at 0.6% based on historical data.
Options Trading Analysis: The analysis of Eli Lilly's stock options, particularly the January 2028 covered call at the $1260 strike, considers the stock's historical volatility of 41% to evaluate risk versus reward.
Current Market Activity: On a recent trading day, S&P 500 put volume was 818,697 contracts compared to 1.67 million call contracts, indicating a strong preference for calls among traders.
Author's Perspective: The opinions expressed in the article are solely those of the author and do not necessarily represent the views of Nasdaq, Inc.
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- Strong Clinical Execution: Eli Lilly achieved positive outcomes in nearly all R&D key events in 2025, showcasing exceptional performance in diabetes and weight loss medications, which is expected to further drive market share and revenue growth in the future.
- Cancer Drug Progress: The company's cancer medication, Jaypirca, excelled in a phase 3 trial and is on track for label expansions, which will provide new revenue streams and enhance its competitiveness in oncology treatment.
- AI Investment: Eli Lilly is investing in building the industry's largest AI supercomputer to accelerate drug development, which is expected to significantly improve clinical trial success rates and bolster the company's innovative standing and market leadership in the pharmaceutical sector.
- Robust Financial Performance: The company continues to report strong financial results, boasts a rich product pipeline, and rewards shareholders through increasing dividends and share buybacks, demonstrating its diversified growth potential beyond diabetes and weight loss markets.
- Trial Success: The LIBRETTO-432 trial demonstrated that Retevmo (selpercatinib) as adjuvant therapy significantly improved event-free survival (EFS) in early-stage RET fusion-positive non-small cell lung cancer (NSCLC) patients, indicating its potential value and likely enhancing market acceptance.
- Survival Trends Favorable: Although overall survival results were immature at the time of analysis, preliminary data showed a favorable trend for Retevmo, highlighting its importance in early treatment and potentially encouraging more patients to undergo genomic testing for optimized therapy.
- Patient Recruitment: The LIBRETTO-432 trial enrolled 151 patients randomized 1:1 to receive either Retevmo or placebo, ensuring the reliability and clinical applicability of the results, further validating the use of targeted therapies in lung cancer.
- Future Outlook: Eli Lilly plans to present detailed trial results at an upcoming medical congress and submit data to global health authorities, which is expected to accelerate the adoption of targeted therapies in early-stage NSCLC patients and promote the widespread use of genomic testing.
- Conference Participation: Eli Lilly will participate in TD Cowen's 46th Annual Health Care Conference on March 2, 2026, where CFO Lucas Montarce will engage in a fireside chat at 3:10 PM ET, highlighting the company's leadership in healthcare.
- Live Webcast: The event will feature a live audio webcast available on Lilly's investor website, ensuring that global investors can access real-time updates on the company's developments, thereby enhancing transparency.
- Replay Availability: A replay of the presentation will be accessible on the same website for approximately 90 days, allowing investors who cannot attend live to review the content, further improving accessibility and interaction between the company and its investors.
- Company Mission: Eli Lilly is committed to addressing global health challenges through innovations in biotechnology, chemistry, and genetic medicine, helping tens of millions of patients improve their quality of life, showcasing its long-term commitment and impact in the healthcare sector.
- Conference Participation: Eli Lilly will participate in TD Cowen's 46th Annual Health Care Conference on March 2, 2026, where CFO Lucas Montarce will engage in a fireside chat at 3:10 PM ET, highlighting the company's leadership in healthcare.
- Live Webcast: The event will feature a live audio webcast available on Lilly's investor website, ensuring global investors can access real-time updates on the company's developments, thereby enhancing transparency and investor confidence.
- Replay Availability: A replay of the presentation will be accessible on the same website for approximately 90 days, which not only accommodates investors who cannot attend live but also helps broaden the dissemination of company information, enhancing brand visibility.
- Company Mission: Eli Lilly is committed to addressing global health challenges through innovations in biotechnology, chemistry, and genetic medicine, advancing treatments for diabetes, obesity, Alzheimer's disease, and more, demonstrating its long-term dedication to improving the quality of life for millions.
- Conference Participation: Eli Lilly will participate in TD Cowen's 46th Annual Health Care Conference on March 2, 2026, where CFO Lucas Montarce will engage in a fireside chat at 3:10 PM Eastern Time, highlighting the company's latest advancements in healthcare.
- Live Webcast: The event will feature a live audio webcast available on Lilly's investor website, ensuring global investors can access real-time information, thereby enhancing transparency and investor confidence.
- Replay Availability: A replay of the presentation will be accessible on the same website for approximately 90 days, allowing investors who cannot attend live to catch up on important updates, thus improving communication efficiency between the company and its investors.
- Company Mission: Eli Lilly is committed to addressing global health challenges through innovations in biotechnology, chemistry, and genetic medicine, aiming to improve the quality of life for tens of millions, showcasing its leadership and social responsibility in the healthcare sector.
- Funding Achievement: Chai Discovery completed a $130 million Series B funding round in 2024, achieving a valuation of $1.3 billion and securing its status as a unicorn, reflecting strong market confidence in its AI-driven drug development potential.
- Partnership Development: The company has established a partnership with pharmaceutical giant Eli Lilly, which will utilize Chai's AI models for multiple drug development projects, marking a significant advancement in the application of AI within the pharmaceutical industry.
- Technological Innovation: Chai Discovery is developing a computer-aided molecular design software aimed at increasing drug development success rates, with the success rate improving from 0.1% to 20% over the past year, showcasing rapid technological advancements and strong market demand.
- Founder's Background: Co-founder Joshua Meier has a rich background from OpenAI and Meta, providing extensive experience in AI and biotechnology, which lays a solid foundation for Chai Discovery's innovations and underscores its leadership position in AI drug development.









