Eli Lillys Market Cap Soars Past One Trillion Dollars: A Milestone for the Pharmaceutical IndustryEli Lilly, a century-old pharmaceutical company, has reached a monumental milestone with its market capitalization surpassing one trillion dollars. This achievement is particularly noteworthy as the trillion-dollar club has traditionally been dominated by technology companies. The companys success is largely attributed to its innovative drugs for obesity and diabetes, Zepbound and Mounjaro, which have seen immense demand.However, this rapid ascent has raised questions among financial analysts about the sustainability of the stocks current valuation. Traditional metrics show that Eli Lillys stock is not considered cheap, trading at forty-three times forward earnings and twenty-two times sales. Some indicators suggest that the stock is currently elevated, implying a higher downside risk.Given the current market conditions and Eli Lillys high valuation, some investors are considering strategies like using an options collar to protect their gains while still participating in potential upside. This approach allows investors to define their risk and reward, offering a way to manage an elevated stock in an uncertain market.

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