Eli Lilly (LLY, news, chart) is already seeing double its normal trading volume on call buying. 15,000 contracts have traded, compared to 1,665 puts. Today’s volume includes a block of 10,000 January 60 calls traded offerside or for 40 cents a contract. The October 55s are also active, with 3800 contracts traded and 100 percent of today’s volume on the offer. Directional sentiment based on early options order flow in LLY is 85 percent bullish.

LLY and partner Amylin (AMLN) shares fell yesterday and are down again today on news the FDA received reports of 6 cases of pancreatitis in patients taking Byetta. A CNBC commentator reported yesterday afternoon that the companies issued a statement saying reports of pancreatitis compications are very rare and in proportion with what is seen in the general populatoin. According to the commentator, the bigger question is what the news means for the once a week version of Byetta, which is in late stage developments by AMLN, LLY, and Alkermes (ALKS). It could potentially slow down the approval.