The November 24 bear call spread on Eli Lilly (LLY) delivered a clean full-premium win as the stock failed to extend its vertical rally into the holiday-shortened week. Despite a tense continuation on Tuesday—where LLY briefly pushed higher and tested the upper stretch zone—the price ultimately stabilized, momentum cooled, and both calls expired safely out of the money.
This setup followed the same statistical logic as the prior week’s exhaustion fade: when RSI is lodged above 81 and price is stretched far from the EMA cluster, the burden of proof shifts to buyers. Without fresh catalysts, sustaining a second consecutive week of parabolic acceleration becomes increasingly improbable.
Trade Recap
Structure: Bear Call Spread
Expiration: Nov 28, 2025
Short Call: 1130C (10-delta)
Long Call: 1140C
Contracts: 10
Credit Received: $0.55 per contract
Gross Profit: $550
Broker Fees: –$11.17
Net P/L: +$539
👉 View on OptionStrat
👉 View in Trade Log
Final Thoughts
This trade reinforces the mechanical consistency of the framework: identify a climactic extension → sell premium far above spot → let probabilities and theta work. Despite intraday volatility and a tense moment mid-week, the structure held, and the spread expired comfortably OTM.
Full premium captured. Clean execution. Repeatable edge.
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Disclaimer
All content is for informational purposes only and does not constitute financial advice.Any trades or strategies should be tested in a simulated environment before use.Trading involves risk, and all decisions are the sole responsibility of the reader.