>>>Join Nate and I weekdays at 10 AM ET for Opening Playbook — we’ll cover the day’s most important, actionable trading opportunities and hot setups, education, strategies and more, CLICK HERE TO JOIN US!<<<
Sometimes the best trades aren’t about chasing all-time highs — they’re about recognizing when a strong name in a strong sector gives you a second chance.
That’s exactly what I’ve been seeing in Eli Lilly (LLY), and it’s why I’ve been building a position across multiple entry strategies. The setup is clean, the sector backdrop is strong, and we’re still early in what looks like a solid turnaround.
With Health Care (XLV) currently sitting as the second strongest sector, the timing for a high-quality name like LLY is hard to ignore.
Let me walk you through what I’m seeing and how I’m positioned.
Why Eli Lilly Caught My Attention
Health Care strength isn’t just a footnote — it plays a direct role in stacking the odds in favor of this trade. Sector momentum has been consistently supportive, which gives LLY’s recent behavior even more weight.
LLY had an amazing run-up followed by a retracement and pullback. That’s textbook healthy price action. What really got my attention was the curling pattern where momentum went lower multiple times before showing a small pop higher — the hook that signals momentum is shifting.
A big part of spotting that shift comes from a newer tool I’ve added to my Newton Indicator called Magic Momentum. It helps pinpoint early momentum reversals by highlighting when acceleration starts turning positive even before price fully reflects it.
In LLY’s case, the tool flipped from red to green, giving me one of the earliest signals that the wind was shifting.
And here’s the key: We’re not back to all-time highs yet. That means there’s still room to run if this momentum continues.
How I’m Playing the Trade
I’m using multiple strategies to capture this move because different approaches suit different levels of conviction and risk tolerance. That flexibility lets me size the trade appropriately while still taking advantage of the setup.
First, I’m holding $52,000 in shares because of how strong the turnaround signal looks and the sector strength backing it. That’s my core position for steady exposure.
For traders looking for defined risk or more leverage, I’m using a March 20 expiration debit spread that I originally entered on Nov. 20. On Monday, it was trading around a net debit of $420 — actually at a discount from my original entry price.
This is a $20-wide spread with a maximum ROI of 376% if LLY reaches the upper strike by March expiration. It’s a clean way to target the move without overcommitting capital.
When I saw it fill at $420, I added to my position. That’s the advantage of spotting a shift early — you have space to build into it methodically. Even now, we’re still early in this turnaround, and the combination of sector strength, improving momentum, and technical confirmation supports that view.
If you’re considering the trade, remember that spreads require patience. Always use a limit order and let the market come to you.
Graham Lindman
Graham Lindman Trading
Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!
- Telegram:https://t.me/+abM5RWRJKrpkNWI5
- YouTube:https://www.youtube.com/@NewMoneyCrew
Important Note: No one from the ProsperityPub team or Graham Lindman Trading will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Target Income Whether the Market Spikes or Crashes
The consistency we’re seeing with Jack’s all-new daily setup is unlike anything I’ve seen before.
You see, he found a way to leverage what’s arguably the market’s most repeated daily phenomenon.
This means that even if the market goes on a tear to new highs or plummets to disappointing lows…
Anyone leveraging this phenomenon can still target up to $500 daily on a $2.5K stake.
I already told you how this daily trade nailed some pretty decent wins, including going 16 trades unbeaten during the beta phase.
If you’re still not sure how to trade over the next few weeks as we head into the new year…
I’d highly recommend you look into these Upside-Down Options.
Now, I can’t make absolute guarantees here…
But Jack has prepared a full briefing with all the details you need to take your first trade as soon as tomorrow.
If you’d like to take a look…
We develop tools and strategies to the best of our ability, but no one can guarantee the future. There is always a risk of loss when trading past performance is not indicative of future results. The performances displayed here were identified in both real time and with 20/20 hindsight. From 5/2022 through 12/2025 the back tested win rate was 86.4% on 631 total setups with a 14.2% average daily return of winners and losers and a 28.4% average win. From 11/12/25 to 12/11/25 the real time trading win rate was 93.3% with an average return on options trades of 15% over a one day hold time with a 24% average win.
