4 Trade Ideas for Amgen: Bonus Idea

• Posted by Greg Harmon
• on September 16th, 2024

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

Amgen, $AMGN, comes into the week approaching resistance at the all-time high. The Bollinger Bands® have tightened, often a precursor to a move, as price rises off a higher low. The RSI is rising above the midline with the MACD positive and moving higher. There is no resistance above 337. Support lower sits at 330 and 325 then 320. Short interest is low at 1.6%. The stock pays a dividend with an annual yield of 2.71% and has traded ex-dividend since August 16th.

The company is expected to report earnings next on October 29th. The September options chain shows biggest open interest at the 310 strike on the put side, then 330. On the call side it is biggest at 340 then 350. In the November chain open interest is spread from 325 to 300, biggest at 300, on the put side. The call side is spread from 315 to 375, biggest at 315. Finally, the November chain has biggest open interest at the 325 put and 335 call.

Amgen, Ticker: $AMGN

Trade Idea 1: Buy the stock on a move over 337 with a stop at 325.

Trade Idea 2: Buy the stock on a move over 337 and add an October 330/320 Put Spread ($3.60) while selling the October 350 Call ($3.15).

Trade Idea 3: Buy the October/November 350 Call Calendar ($7.60) while selling the October 320 Put ($4.20).

Trade Idea 4: Buy the November 315/340/370 Call Spread Risk Reversal (50 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 FOMC meeting and Options Expiration, saw equity markets showing strength with a rebound from the week prior.

Elsewhere look for Gold to continue its uptrend while Crude Oil consolidates in a short term downtrend. The US Dollar Index continues to drift lower in consolidation while US Treasuries are on the edge of a reversal to an uptrend. The Shanghai Composite looks to continue the downtrend while Emerging Markets consolidate.

The Volatility Index looks to remain low and stabilizing making the path easier for equity markets to the upside. Their charts look strong, especially on the longer timeframe with the SPY on the edge of break to new highs while the IWM and QQQ hold near recent highs. On the shorter timeframe the SPY is also strong with the IWM and QQQ possibly building tightening consolidation zones. 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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