4 Trade Ideas for Amgen: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Amgen, $AMGN, comes into the week approaching resistance. It is back over its 100 day SMA as well with the Bollinger Bands® pointing higher. It has an RSI rising in the bullish zone with the MACD positive and moving higher. There is resistance at 360 and 364 then 372 and 380 before 385 and 388. Support is at 356 and 351.50 before 345. Short interest is low at 2.3%. The stock pays a dividend with an annual yield of 2.81% and has traded ex-dividend since May 15th.

The company is expected to report earnings next on August 3rd. The July options chain shows biggest open interest at the 325 and 305 strike puts and at the 375 strike call. In the August chain open interest is biggest at 300 on the put side and 310 on the call side. Finally, in the September chain open interest is biggest at the 330 put and the 350 call.

Amgen, Ticker: $AMGN

Trade Idea 1: Buy the stock on a move over 360 with a stop at 350.

Trade Idea 2: Buy the stock on a move over 360 and add a July 355/345 Put Spread ($5.21) while selling the August 390 Call ($5.00).

Trade Idea 3: Buy the July/August 375 Call Calendar ($8.28) while also selling the August 330 Puts ($6.15).

Trade Idea 4: Buy the August 330/365/390 Call Spread Risk Reversal ($4.35).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday, which with just 2 trading days left in the month of June, saw equity markets settling into a consolidation zone for the large caps as money rotates into the flying small caps.

Elsewhere, look for Gold to continue a short term downtrend while Crude Oil joins with its own short term downtrend. The US Dollar Index looks to continue higher testing a break of the 15 month range and morphing into an uptrend while US Treasuries continue to hold over support in consolidation. The Shanghai Composite looks to continue the consolidation in a slow drifting range higher while Emerging Markets pause after a long run of new highs in their uptrend.

The Volatility Index looks to continue in the normal zone keeping at least a slight tailwind behind equities. The charts of the SPY, the QQQ and the IWM continue to look strong on the longer timeframe with the IWM leading and the SPY and QQQ consolidating. On the shorter timeframe the SPY and the QQQ still have some work left in the short term bounce to prove the pullback is over. Making a new all-time high with higher momentum readings would solidify that. The IWM, however, is looking strong, after a new all-time high both Thursday and Friday. Use this information as you prepare for the coming week and trad’em well.