1. Indicator State: PCS READY = TRUE (94/100 Score)
My scan shows PCS READY (94/100), which is one of the strongest readings you’ve had recently.
Key confirmations:
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Trend: OK
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Close > SMA50: OK
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SMA50 > SMA200: OK
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RSI (40–65): OK (constructive, not overheated)
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ATR% ≥ 1.5: ~2.5% ✅
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Gap% < 4: ~0.25% ✅
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Above swing low (20): OK
This tells us:
Downside risk is structural, not random.
2. EMA Structure: Institutional Trend Fully Intact
On the daily chart:
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9 EMA > 20 EMA > 50 EMA
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EMAs are stacked and rising
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The 50 EMA is trending higher, not flattening
This is the ideal PCS environment:
a dominant bullish regime where pullbacks are expected to be bought, not extended.
3. Price Context: Controlled Pullback, Not Distribution
Context matters a lot with LLY:
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Massive multi-month uptrend
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Recent pullback held above the 20 & 50 EMA
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No high-volume rejection or trend failure candles
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Current price action = consolidation inside strength
My PCS system is designed to sell puts after strength proves it can absorb selling pressure — exactly what this chart shows.
4. Strike Selection: 970 Short Strike Is Structurally Protected
At entry:
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Spot price ≈ 1,050
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50 EMA ≈ 1,000–1,005
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Short strike 970 sits:
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~7–8% below spot
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Below the rising 50 EMA
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Below recent consolidation lows
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Outside normal pullback depth
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For LLY to threaten 970 by Feb 6, it would require:
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A break of the 50 EMA
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Follow-through selling
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A regime change, not noise
That’s exactly the asymmetry PCS is designed to exploit.
5. Delta & Credit Are Right Where I Want Them
From your options chain:
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Short delta ≈ −0.20 → sweet spot for PCS
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$1.08 credit on $5 width → strong premium for the risk
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31 DTE → optimal theta acceleration window
I’m getting paid efficiently, without reaching for strikes.
My Personal Thought’s outside the Technicals
To tell you the truth, I’ve gotten burned on LLY’s in past so I’m kind of hoping my PCS system can help recover my previous loss in the past. I also do believe that this stock should either return to the highs or go a little bit more down before going up and hovering between the highs and 1060 area. I’m looking to collect 50% profit first. But if I see it going up in the next few days, ill increase it to 70% until 21 days expiration is reached and then depending on where its at, ill see whether to close or hold.