Imagine you have a toy, but you want to trade it with a friend who has another toy. If your friend says your toy is better and wants to trade theirs for yours, you're getting a good deal, right? Well, big money traders are doing something like that but with lots of money and stocks instead of toys. They're trying to guess what's going to happen to a stock's price, and if they think the price is going to go up, they buy a "call option". If they think the price is going to go down, they buy a "put option". It's like they're saying "I think this stock's price is going to go up (or down), so I'm going to buy a special ticket that lets me buy (or sell) a certain amount of stocks at a certain price at a certain time in the future". These big money traders know a lot about stocks and they use all kinds of tricks to try to predict what's going to happen. Some people even study these big money traders' options trades to try to figure out what they know and make money too.
explanation like for a 10 years old: Imagine you and your friends have a lemonade stand. If you think more people are going to come and buy your lemonades, you're going to buy a lot of lemons so you can make more lemonades to sell. But if you think less people are going to come and buy your lemonades, you're going to buy less lemons. Big money traders are doing something like that but with lots of money and stocks instead of lemons. They're trying to guess what's going to happen to a stock's price, and if they think the price is going to go up, they buy a "call option". If they think the price is going to go down, they buy a "put option". It's like they're saying "I think this stock's price is going to go up (or down), so I'm going to buy a special ticket that lets me buy (or sell) a certain amount of stocks at a certain price at a certain time in the future". These big money traders know a lot about stocks and they use all kinds of tricks to try to predict what's going to happen. Some people even study these big money traders' options trades to try to figure out what they know and make money too.
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https://www.theonion.com/upi-reads-comprehensive-report-on-clinton-impeachment-wid-1819591694
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### Follow the money: Eli Lilly's options signals are pointing toward a major price swing
Eli Lilly LLY has seen a recent surge in its options trading activity. The big money traders have taken a bearish stance on the stock, with 46% of the trades being bearish and only 28% being bullish. The total amount of bearish trades amounts to $190,255, while the bullish trades amount to $1,136,270.
This unusual trading activity suggests that the big money traders are expecting a significant price swing for Eli Lilly in the coming months. The stock's current price is $888.05, up by 0.24%. Its RSI readings suggest that it may be approaching oversold territory. The company's anticipated earnings release is in 29 days.
Over the past month, four industry analysts have shared their insights on Eli Lilly, proposing an average target price of $982.5. A few analysts have revised their ratings, while one has maintained their rating. The stock's overall sentiment is split between bullish and bearish, with a neutral rating from JP Morgan and an overweight rating from Cantor Fitzgerald.
Based on the trading activity, the big money traders are aiming for a price territory stretching from $800.0 to $1060.0 for Eli Lilly over the recent three months. The options trading activity for Eli Lilly suggests that the stock may be due for a significant price swing in the coming months. Investors should keep a close eye on the stock's performance and be prepared for potential market volatility.
### Eli Lilly's options suggest a big price swing is coming soon
Eli Lilly LLY has seen a recent surge in its options trading activity.
Negative
### MY RIGHT COMMENT:
Eli Lilly options activity in recent weeks has indicated a higher percentage of put options compared to call options, which can suggest a potential downward movement in the stock price. Institutional investors have been selling put options, which are used to protect against downside risk, and buying call options, which are used to profit from an upside move in the stock price. This could imply that these investors are expecting the stock to experience a significant drop in value, with the possibility of the stock falling below $800.0 or even under $1,060.0.
While options trading involves significant risks, it can provide investors with valuable insights into market sentiment and the potential direction of a stock's price. It's essential for investors to stay informed about recent options activity and to use it in conjunction with other technical and fundamental indicators to make informed investment decisions.
Over the past month, several industry analysts have revised their ratings on Eli Lilly, with some lowering their ratings to Neutral or Sell, while others have maintained their ratings at Buy or Overweight. The average price target for Eli Lilly among these analysts is $982.5, which is slightly below the current stock price. This could indicate that the stock may be overvalued, and investors should exercise caution before buying into the stock.
Overall, the recent options activity for Eli Lilly suggests that the stock may be experiencing downward pressure, and there may be a higher likelihood of a decline in the stock price in the near future. Investors should carefully consider their risk tolerance and investment goals before making any investment decisions in Eli Lilly.
### AI:
1. How do you calculate the put/call ratio for Eli Lilly options activity in recent weeks?
2. How does the put/call ratio for Eli Lilly compare to other pharmaceutical companies?
3. What factors can cause a stock's put/call ratio to increase or decrease?
4. How can options trading be used to hedge against downside risk?
5. What is the significance of the recent options activity for Eli Lilly's stock price?
financial instruments are present and relevant for investors looking to invest in AI. It is crucial for investors to understand the various financial instruments available to them in order to make informed decisions when investing in AI. These financial instruments include stocks, bonds, options, mutual funds, exchange-traded funds (ETFs), and real estate investment trusts (REITs). Each of these instruments has its own set of characteristics, benefits, and risks that investors should consider before investing.
Investing in AI through stocks involves buying shares of the company. Stock prices can be volatile and can fluctuate based on market conditions, company performance, and other factors. However, stocks have the potential for high returns over the long term. Investors should consider their risk tolerance and investment goals before investing in AI stocks.
Bonds are another financial instrument available for investing in AI. Bonds are essentially loans made by investors to the company or government issuing the bond. Bonds typically offer a fixed interest rate and a fixed repayment date. Bonds are considered a lower-risk investment compared to stocks, but they also tend to offer lower returns.
Options are a type of derivative that gives investors the right, but not the obligation, to buy or sell an underlying asset at a specified price within a certain time frame. Options can be used to hedge against market risks or to speculate on the direction of an asset’s price. However, options can be complex and risky, and are not suitable for all investors.
Mutual funds and exchange-traded funds (ETFs) are investment vehicles that allow investors to pool their money together and invest in a diversified portfolio of assets. These funds are managed by professional fund managers and can offer a convenient way for investors to diversify their portfolios and reduce risk.
Real estate investment trusts (REITs) are companies that own and manage income-producing real estate. REITs are required to distribute at least 90% of their taxable income to shareholders in the form of dividends. REITs can be a good way for investors to invest in real estate without the need to buy and manage property themselves.
In conclusion, investing in AI through various financial instruments can offer potential returns and diversification benefits for investors. However, it is essential for investors to understand the risks and characteristics of each financial instrument before investing. Investors should consider their investment goals and risk tolerance when choosing the right financial instrument for their AI investments.
### JKA:
Comprehensive investment recommendations and risks: financial instruments are present and relevant for investors looking to invest in JKA. It is crucial for investors to understand the various financial instruments available to them in order to make informed decisions when investing in JKA. These financial instruments include stocks, bonds, options, mutual funds, exchange-traded funds (ETFs),