Positive drug trial results are boosting pharmaceutical stocks today, with Corbus Pharmaceuticals Holdings Inc. (NASDAQ:CRBP) and Eli Lilly & Co. (NYSE:LLY) drawing investor attention after encouraging developments for their latest obesity drugs.
Corbus noted its Phase 1a study for its oral CRB-913 medication, which targets different pathways than GLP-1 drugs, showed a favorable safety profile and emerging weight loss evidence. The small-cap stock was last seen up 2% to trade at $10.46, bouncing off $10 after a pullback from its Oct. 20, all-time high of $20.56. In the last nine months, CRPB added 62.8%.
Eli Lilly is also in focus after late-stage trial data for its retatrutide drug showed significant weight loss, as well as pain relief for participants suffering from osteoarthritis of the knee. The equity was last seen up 3.2% at $1,025.28, rebounding after an extended breather off its Nov. 26, all-time peak of $1,111.99. So far this year, LLY has added mover 33%.
Options bulls are targeting both equities in the options pits today, with CRBP seeing 43 times the intraday call volume, while LLY is seeing double the amount of calls normally traded at this point. The most popular contract for the former is the December 19 call, and for the latter it's the weekly 12/12 1,020-strike call, with new positions opening at both.
Now seems like an opportune time to bet on CRBP and LLY with options, which sport Schaeffer's Volatility Indexes (SVI) of 94% and 30%, which rank above 9% and 15% of annual readings, respectively. This means options are affordably priced at the moment.
