My Trade Plan Details:

• LLY Sept 15, 2023 $565 call near $5.50
• Stop: Close under $545
• Target 1: $575
• Target 2: $590

BONUS Call Spread Idea:

LLY Sept 15 BUY $555 call & SELL $575 call for $7.00 net debit.

My Reasoning:

While I do think the tech sector is going to stage a strong recovery, at least for a few days, I am going with one of the strongest stocks in the entire market right now.  

If you haven’t been following this story, you might think it is some “AI-powered tech stock” if you simply looked at the chart.  But no, it is a “boring” old pharma stock that just happens to be one of the few companies managing fantastic growth in that sector right now.

My Bullseye pick this week is Eli Lilly (LLY).

LLY is a very extended stock, but it hasn’t shown any signs of letting up yet.  I think it might just keep powering higher from here if the markets hold up.

My plan is to start a position today, hopefully on a slight pullback for the stock, with a half-sized position. I want to leave room for an addition if the stock has a slight pullback this week, but stays above my stop-loss price.

If things don’t go my way, I plan to stop out of this trade if LLY closes under $545, which is the recent support level from the last week or so.

If it breaks out higher, I think we could see a meaningful move up to around $575 as my first target and even $590 after that.

It is going to be a fun week of trading…I hope you are ready for it!