4 Trade Ideas for the Amgen: Bonus Idea

• Posted by Greg Harmon
• on December 4th, 2023

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

Amgen, $AMGN, comes into the week approaching resistance. The Bollinger Bands® have squeezed in and may be opening higher. The RSI is rising back to the bullish zone with the MACD about to cross to positive. There is resistance at 273 and 276.50 then 281.40 and 288 before 294. Support lower comes at 269.50 and 266.50. Short interest is low at 1.3%. The stock pays a dividend with an annual yield of 3.13% and has traded ex-dividend since November 16th.

The company is expected to report earnings next on January 29th. The December options chain shows biggest open interest at the 275 put strike and then 250 below. On the call side it is focused at the 275 then 280 strikes. In the January chain it is spread from 255 to below 225 on the put side and biggest at 260 then 230 on the call side. The February chain shows open interest spread from 275 to 240 on the put side and biggest at 275 then 290 on the call side.

Amgen, Ticker: $AMGN

Trade Idea 1: Buy the stock on a move over 273 with a stop at 269.

Trade Idea 2: Buy the stock on a move over 273 and add a January 270/260 Put Spread ($3.00) while selling the January 285 Calls ($3.15).

Trade Idea 3: Buy the January/February 280 Call Calendar ($3.40) while selling the January 255 Put ($1.85).

Trade Idea 4: Buy the February 250/275/300 Call Spread Risk Reversal ($5.30).

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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 first day of December in the books, saw equity markets continue to show strength but with some rotation from tech to large and small cap stocks.

Elsewhere look for Gold to continue its break out to new highs while Crude Oil consolidates in a downtrend. The US Dollar Index continues the short term drift to the downside while US Treasuries bounce in their downtrend. The Shanghai Composite looks to continue the short term drift lower while Emerging Markets consolidate under long term resistance.

The Volatility Index looks to remain very low making the path easier for equity markets to the upside. Their charts look strong, especially on the longer timeframe. On the shorter timeframe the QQQ is seeing a digestive pause as the SPY and the IWM benefit from money flowing into equities. 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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