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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- Market Share Shift: Eli Lilly has captured 60% of the U.S. GLP-1 market, while Novo Nordisk's share has fallen to 39%, indicating Lilly's strong growth momentum in the obesity drug sector, which may impact Novo's future sales performance.
- Significant Revenue Growth: Lilly's Mounjaro and Zepbound generated over $11 billion in revenue in the recent quarter, showcasing triple-digit growth rates that not only enhance the company's overall financial performance but also strengthen its position in a competitive market.
- Manufacturing Capacity Boost: By ramping up production capabilities, Lilly has ensured product availability, addressing shortages from previous years, which has allowed more patients to receive timely treatment and further propelled market share growth.
- Clinical Study Advantage: Lilly's head-to-head study comparing Zepbound to Wegovy demonstrated superior weight loss results for Zepbound, potentially leading doctors and patients to prefer Lilly's products, thereby solidifying its market leadership.

- Clinical Trial Results: Eli Lilly's TOGETHER-PsO Phase 3b trial revealed that 27.1% of participants receiving the combination of Taltz and Zepbound achieved complete skin clearance and at least 10% weight loss, significantly outperforming the 5.8% in the Taltz monotherapy group, indicating the efficacy of the combination therapy.
- Side Effects Analysis: Common adverse events in the Taltz and Zepbound group included nausea, diarrhea, and injection site reactions, yet the overall efficacy remains superior to monotherapy, highlighting the potential benefits of combination treatment despite the side effects.
- Partnership with CSL: Eli Lilly has entered into an agreement with Australian company CSL, which will receive an upfront payment of $100 million and potential milestone payments, as well as royalties on global net sales, facilitating the development of clazakizumab for cardiovascular event prevention.
- Market Performance Analysis: Although Eli Lilly's stock is currently trading below its 20-day and 50-day simple moving averages, indicating short-term weakness, it remains above its 100-day and 200-day moving averages, suggesting a positive long-term trend, with analysts maintaining an optimistic outlook on its future performance.
- Trial Success: Eli Lilly announced that its TOGETHER-PsO open-label Phase 3b trial successfully met both primary and key secondary endpoints, demonstrating the efficacy of its weight loss therapy Zepbound combined with psoriasis therapy Taltz, marking a significant advancement for obese or overweight patients with plaque psoriasis.
- Significant Weight Loss: Over 36 weeks, 27% of patients receiving the combination therapy achieved at least a 10% weight loss and complete skin clearance, showcasing the potential of this combination therapy to improve patient quality of life, far exceeding the 5.8% achieved with Taltz alone.
- Efficacy Comparison: The key secondary endpoint revealed that patients on the combination regimen were 40% more likely to achieve PASI 100 compared to those receiving Taltz alone, further validating the advantages of using Zepbound with Taltz, which could enhance future market acceptance.
- Safety Profile: The trial reported mostly mild to moderate adverse events consistent with the known tolerability profiles of each drug, indicating the acceptability of this combination therapy in terms of safety, laying the groundwork for future regulatory discussions.
- Clinical Trial Results: In the TOGETHER-PsO study, the combination of Taltz and Zepbound achieved complete skin clearance (PASI 100) and ≥10% weight loss in 27.1% of patients at 36 weeks, significantly higher than the 5.8% in the Taltz monotherapy group (p<0.001), indicating the importance of combination therapy in improving patient quality of life.
- Significant Relative Advantage: Patients in the combination therapy group were 40% more likely to achieve PASI 100 compared to those on monotherapy, with rates of 40.6% versus 29.0% (p<0.05), demonstrating the positive impact of obesity treatment on psoriasis and providing new directions for future treatment strategies.
- High BMI Patient Population: The average BMI of study participants exceeded 39 kg/m², highlighting the high disease burden in this group and emphasizing the need for comprehensive treatment approaches for obesity and psoriasis, which could change clinical practice standards.
- Good Safety Profile: Adverse events in the combination therapy were generally mild to moderate, primarily including nausea, diarrhea, and injection site reactions, consistent with known safety profiles, indicating the feasibility and safety of this treatment regimen in clinical applications.
- Market Size Growth: According to DelveInsight's analysis, the juvenile idiopathic arthritis market is projected to reach USD 2.3 billion by 2025, indicating stable growth potential over the next decade, reflecting increasing demand for new therapies.
- Increased Disease Awareness: As awareness of juvenile idiopathic arthritis rises, the total cases in the 7MM are expected to increase from 141,800 in 2025 to 173,000 by 2036, with a CAGR of 1.8%, driving demand for new treatment options.
- Emerging Therapies Launch: Emerging therapies such as SOTYKTU from Bristol-Myers Squibb and BIMZELX from UCB Biopharma are in clinical trials and are expected to transform the market landscape by providing more effective treatment options, thereby enhancing patient quality of life.
- Intensifying Market Competition: With multiple pharmaceutical companies like Novartis and AbbVie entering the juvenile idiopathic arthritis treatment space, competition will intensify, driving innovation and R&D investment, further accelerating rapid market development.
- License Transaction Value: Eli Lilly will pay Australian biopharma CSL $100 million for a license to explore additional indications for the anti-IL-6 monoclonal antibody clazakizumab, reflecting Lilly's recognition of the drug's potential market.
- Clinical Development Stage: Clazakizumab is currently in phase 3 development aimed at preventing cardiovascular events in individuals with end-stage kidney disease, with CSL retaining rights for this indication, indicating its ongoing investment and commitment in this area.
- Milestone Payments and Royalties: The agreement allows CSL to be eligible for milestone payments and royalties on global net sales for clazakizumab indications that Lilly gains approval for, providing CSL with a continuous revenue stream and enhancing its financial stability.
- Immuno-inflammatory Treatment Potential: CSL noted that by inhibiting IL-6 from binding with its receptor, clazakizumab could treat immuno-inflammatory conditions, which may open new opportunities for the company's future product line expansion.










