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Lilly (Eli) — Premium selling conditions for LLY
Lilly (Eli) (LLY) operates in the Health Care sector and has actively traded listed options. The premium selling signal is weak — implied volatility is not sufficiently overpriced relative to realized movement. VRP at +8.8pp does not clear the threshold for a reliable selling edge. Conditions do not support new premium selling positions on LLY until the setup improves. See Strategy Builder for specific trade setups.
Confidence is rule-based (not ML). All factors required for Strong:
Inputs: ORATS VRP (IV30d − HV20d) · IV Rank 1Y · Earnings proximity · RV spike ratio.
Use this summary to decide whether conditions favor selling premium now, waiting, or using defined risk. All signals are combined into a single actionable verdict.
Green signal = conditions favor premium selling. Yellow = be selective. Red = consider waiting.
Multi-factor composite: IV Rank weight + VRP weight + RV Regime + Earnings proximity + Term structureIV Rank, VRP, RV Ratio, days to earnings, term structure shape
VolRadar proprietary signal combining ORATS data inputs
The signal assesses market conditions, not trade outcomes. A favorable signal does not account for position sizing, liquidity, or individual risk tolerance. Always verify with your broker.
These four sub-factors combine to determine whether LLY has a viable premium selling environment right now. ✓ = favorable · ~ = marginal (normal range) · ✗ = unfavorable
Earnings in 1d · earn effect 3.0x. See Earnings Crush → Consider defined-risk strategies with expiration before earnings.
Limited edge — market is closed
Market is closed — live option quotes and executable setups refresh during trading hours (9:30 AM – 4:00 PM ET, Mon–Fri). Explore liquid tickers for when the market opens.
Quantitative screening, not investment advice. Verify with your broker. Disclaimer
Lilly (Eli) currently shows weak conditions for premium selling. Key concerns: upcoming earnings (1d). Consider waiting for the signal to improve or use only defined-risk strategies with small position sizes.
Lilly (Eli)'s VRP is +8.8pp — implied volatility exceeds realized movement by a wide margin. This means option buyers are overpaying for protection, creating a historically observed statistical edge for premium sellers. Historically, periods of elevated VRP have been the most profitable for theta strategies.
Lilly (Eli) has earnings in 1 days. Earnings create binary event risk — the stock can gap significantly on the announcement. Premium sellers should either: (1) use expirations that settle before earnings, (2) switch to defined-risk strategies like iron condors, or (3) wait until after the announcement to sell.
Lilly (Eli) currently shows weak conditions (upcoming earnings (1d)). Consider waiting for the signal to improve or use only defined-risk strategies with small position sizes.
Lilly (Eli)'s RV Ratio is 0.81 — this compares realized volatility (ORATS close-to-close) to implied volatility (30-day ATM). Below 0.85 = calming volatility, the most favorable regime for premium sellers.
Five data-driven factors are weighted: Premium Edge (30%) — is IV overpriced vs RV; VIX Regime (25%) — is VIX in the 15–25 range where theta strategies thrive; Volatility Trend (20%) — is short-term RV declining; Earnings Safety (15%) — distance to next earnings; and Term Structure (10%) — contango vs backwardation. For Lilly (Eli), these combine into a 0–100 score reflecting both stock-specific and market-wide conditions.
Key risks for Lilly (Eli): 1 caution flag(s): earnings in 1 days (high gap risk). Always use proper position sizing and define your exit rules before entering.
Look at three metrics in your broker: bid-ask spread (under 5% of mid is good, over 15% is a warning), open interest (higher means easier to enter and exit), and daily volume. For Lilly (Eli), check the specific strike and expiration you plan to trade — ATM and near-term monthlies are typically the most liquid. Use limit orders to avoid slippage from wide spreads.
Lilly (Eli) has earnings in 1 days. Earnings create binary event risk — the stock can gap 5–15% on the announcement. This is extremely close. Consider closing existing positions or avoiding new ones spanning earnings.
Lilly (Eli)'s RV Ratio is 0.81, meaning realized volatility (HV 20d) is well below implied volatility (IV 30d). For premium sellers, this is ideal — options are priced for larger moves than the stock is delivering, so you collect premium based on higher expected movement while actual movement is calm. This gap between implied and realized is where theta strategies generate their edge.
All P/L calculations exclude commissions and fees. Actual returns may differ.