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 quickly back at resistance after a pullback. The Bollinger Bands® are opening to allow more movement. The RSI is rising in the bullish zone with the MACD crossed up and positive. There is resistance at 298.50 and 304.50 then 311.50 and 319 before 328.50 and 337.50. Support lower is at 295 and 291.50 then 289. Short interest is low at 2.5%. The stock pays a dividend with an annual yield of 3.19% and has traded ex-dividend since May 16th.

The company is expected to report earnings next on August 5th. The July options chain has biggest open interest at the 280 then 290 and 275 put strikes. On the call side it is biggest at 300 the 320 and 290. In the August chain open interest builds from 310 to a peak at 260 on the put side, but is large and focused at 315 on the call side. Finally, the September chain shows open interest spread from 310 to below 250 on the put side and a build from 280 to a peak at 300 then tailing to 340 on the call side.

Amgen, Ticker: $AMGN

Trade Idea 1: Buy the stock on a move over 298.50 with a stop at 288.50.

Trade Idea 2: Buy the stock on a move over 298.50 and add a July 290/280 Put Spread ($1.90) while selling the August 325 Call ($2.00).

Trade Idea 3: Buy the July/August 310 Call Calendar ($5.40) and sell the August 275 Put ($3.70).

Trade Idea 4: Buy the September 275/305/325 Call Spread Risk Reversal ($2.40).

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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 closing out the 2nd Quarter and heading into the July 4th Holiday, saw equity markets exhibit renewed strength with strong moves higher.

Elsewhere, look for Gold to continue to consolidate in its uptrend while Crude Oil drifts up in consolidation. The US Dollar Index continues a short term move to the downside at more than 3 year lows while US Treasuries consolidate in their downtrend. The Shanghai Composite looks to continue the move higher in consolidation while Emerging Markets continue their break to the upside.

The Volatility Index looks to continue in the normal range making life easier for equity markets to the upside. The charts of the SPY and QQQ are showing strength on both timeframes as they continue to print new all-time highs. The IWM continues to lag the SPY and QQQ in recovery in price but is joining the party racing higher as well. The classic “V” recovery continues to build in all 3 Index ETFs. 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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