4 Trade Ideas for Amgen: Bonus Idea

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

Amgen $AMGN, with the exception of October and November 2021, has traded mainly sideways in a broad range between 220 and 260 since May of 2020. It comes into the week bouncing off a retest of support at 230 from the start of May on large volume. The RSI is also moving higher, off the edge of oversold territory, with the MACD starting to level and negative.

There is resistance above at 240 and 245 then 248 and 250 before 255 and 257.50 then 260. Support lower comes at 233 and 230 then 226 and 220 before 214. Short interest is moderate at 3.8%. The stock pays a dividend with an annual yield of 3.31% and has been trading ex-dividend since May 16th. The company is expected to report earnings next on August 1st.

The July calls show the biggest open interest at 250 above and then below at the 220 and 215 strikes on the put side. On the call side the biggest open interest is at the 250 strike. In the August chain things are just getting going so looking at the September chain, shows the biggest open interest at the 245 and 235 put strikes and then at the 265 call strike.

Amgen Ticker: $AMGN

Trade Idea 1: Buy the stock on a move over 236 with a stop at 231.

Trade Idea 2: Buy the stock on a move over 236 and add a July 230/225 Put Spread ($2.40) while selling the August 255 Call ($2.60).

Trade Idea 3: Buy the July/August 250 Call Calendar ($3.20) and sell the August 210 Put ($2.70).

Trade Idea 4: Buy the August 215/240/265 Call Spread Risk Reversal ($2.90).

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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 the June options expiration in the books, watched equity markets accelerate to the downside.

Elsewhere look for Gold to consolidate while Crude Oil pulls back in the uptrend. The US Dollar Index looks to pause in its move higher while US Treasuries continue their downtrend. The Shanghai Composite looks to continue the trend higher while Emerging Markets continue to move lower. The Volatility Index looks to remain elevated making the path easier for equity markets to the downside.

Their charts look horrible, especially on the longer timeframe. On the shorter timeframe the IWM, the QQQ and the SPY could possibly consolidate or bounce next week due to the technical factors listed above to give a reset on momentum measures. But there should be no mistaking that for a reversal if they do, the trend remains to the downside. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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