4 Trade Ideas for Amgen: Bonus Idea

• Posted by Greg Harmon
• on September 11th, 2023

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

Amgen, $AMGN, comes into the week moving up to short term resistance after a 3 week pullback. It ended Friday over the 20 day SMA. It has RSI rising in the bullish zone with the MACD turning to cross back up and positive. The move out of a bull flag gives a target to 284. There is resistance at 260 and 266 then 270 and 276 before 282. Support lower comes at 256 and 253 then 249. Short interest is low at 1.3%. The stock pays a dividend with an annual yield of 3.28% and has traded ex-dividend since August 17th.

The company is expected to report earnings next on November 1st. The September options chain shows biggest open interest at the 260 put and call. The October chain has open interest spread on the put side from 265 down to 200. On the call side it is spread from 225 to 280 before taking a break and picking up again at 300. The January chain is the first to cover the next earnings report and has large open interest from 255 to 200 on the put side. It is focused at 260 and 230 on the call side.

Amgen, Ticker: $AMGN

Trade Idea 1: Buy the stock on a move over 260 with a stop at 253.

Trade Idea 2: Buy the stock on a move over 260 and add an October 255/245 Put Spread ($2.50) while selling the January 295 Calls ($2.00).

Trade Idea 3: Buy the October/January 275 Call Calendar ($5.60) while selling the October 250 Put ($2.45).

Trade Idea 4: Buy the January 245/265/280 Call Spread Risk Reversal (25 cents).

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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 heading into the September options expiration, sees equity markets showing some exhaustion after a promising move higher the prior week.

Elsewhere look for Gold to continue its pullback while Crude Oil continues to move higher in a break out. The US Dollar Index continues to move to the upside while US Treasuries continue their pullback. The Shanghai Composite looks to continue to move lower while Emerging Markets consolidate in a range.

The Volatility Index looks to remain low making the path easier for equity markets to the upside. Their charts look strong still on the longer timeframe. On the shorter timeframe both the QQQ and SPY have put in lower highs on the bounce, and this gives some pause. The IWM continues to wallow in broad consolidation on both timeframes. Use this information as you prepare for the coming week and trad’em well.

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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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