Put Spread on LLY on 11/11/2013

Eli Lilly and Company (LLY) discovers, develops, manufactures, and sells pharmaceutical products worldwide.

The company’s neuroscience products treat major depressive disorders; schizophrenia, acute mixed or manic episodes associated with bipolar I disorder, and bipolar maintenance; attention-deficit hyperactivity disorder; depressive disorder, obsessive-compulsive disorder, bulimia nervosa, and panic disorder; bipolar depression and treatment-resistant depression; and brain imaging of beta-amyloid plaques. Its endocrinology products treat diabetes; osteoporosis in postmenopausal women and men at high risk of fracture; human growth hormone deficiency and pediatric growth conditions; and testosterone deficiency.

The company’s oncology products treat malignant pleural mesothelioma; pancreatic, metastatic breast, non-small cell lung, ovarian, bladder, colorectal, and head and neck cancers, as well as cardiovascular products, which are used treat erectile dysfunction, benign prostatic hyperplasia, high cholesterol, pulmonary arterial hypertension; reduce thrombotic cardiovascular events; and used as adjunct to percutaneous coronary intervention. In addition, it provides animal health products, such as cattle feed additives; antibiotics to treat respiratory and other diseases in cattle, swine, and poultry; leanness and performance enhancers for swine and cattle; protein supplements to improve milk productivity in dairy cows; anticoccidial agents; antibiotics to control enteric infections in calves and swine; products to treat canine separation anxiety; products that prevent flea infestations on dogs, kills fleas, prevent heartworm disease, and control intestinal parasite infections; and other pharmaceutical products to treat staphylococcal and bacterial infections.

Shares are heading lower and have formed a bearish "descending tops." Goldman Sachs downgraded the stock today.

52-Week Trading Range: $44.88 - 58.40

Last Trade: $49.96

Trade Buy 1 December $50.00 Put at $1.31 Sell 1 December $48.00 Put at $0.50 For a net debit of $0.81 Profit/Loss Analysis Breakeven at $49.19 Maximum profit is $119.00 at strike of $48.00 Maximum loss is ($81.00) at strike of $50.00 Closing Summary Sold 1 December $50.00 Put at $1.15 Bought 1 December $48.00 Put at $0.10

Position closed on 12/17/2013 at price of $1.05 with a 29.63% gain in 35 days.

Updates

12/17/2013 9:59:18 AM

We are taking profits on LLY put options.

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