This week’s LLY stock forecast reflects elevated call option activity, suggesting traders are positioning for near-term upside ahead of clinical trial readouts. Implied volatility sits at 24%, offering tactical options plays. The true power of the LEAPS strategy becomes apparent in the most optimistic scenarios. If Novo Nordisk rebounds to its all-time high of $140, the LEAPS investor's returns would be significantly higher in percentage terms than those of the common stock investor due to the embedded leverage. Furthermore, the capital saved by choosing the LEAPS option can be invested elsewhere (e.g. short-term fixed income securities that currently yields around 4% per year), generating additional returns. This dual-strategy approach allows for a high-conviction sentiment on a potential recovery while also creating a separate, lower-risk income stream, offsetting some of the primary risk of the options trade. Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks. LLY stock forecast valuation scenarios see potential to hit $900 in 12 months if revenue surprises continue, supported by strong clinical trial momentum.