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 trying to move up out of a bull flag. It has a RSI in the bullish zone with the MACD positive. There is no resistance above 385. Support lower is at 362.50 and 351. Short interest is low at 2.5%. The stock pays a dividend with an annual yield of 2.73% and has traded ex-dividend since Friday. The company is expected to report earnings next on April 29th.

The February options chain has open interest spread from 367.50 to below 320, with a larger slug at 315, on the put side and focused and large at 365 on the call side. In the March chain it builds to a peak at 300 on the put side and is large at 350 and 360 below and 390 above on the call side. The April chain has largest open interest at the 310 put and above at the 370 call while bigger at 305 below.

Amgen, Ticker: $AMGN

Trade Idea 1: Buy the stock on a move over 371 with a stop at 359.

Trade Idea 2: Buy the stock on a move over 371 and add a March 360/340 Put Spread ($5.00) while selling the April 400 Calls ($4.55).

Trade Idea 3: Buy the March/April 385 Call Calendar ($5.20) while selling the April 340 Puts ($4.55).

Trade Idea 4: Buy the April 340/375/400 Call Spread Risk Reversal ($4.45).

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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 Washington’s Birthday Exchange Holiday and after absorbing both Non-Farm Payrolls and CPI data, saw equity markets show they could use a rest getting knocked back a bit on the week.

Elsewhere, look for Gold to drift between $5000 and $5100 continuing to digest the long move up while Crude Oil moves slightly higher in the consolidation range. The US Dollar Index is showing some weakness again heading toward a 4 year low while US Treasuries continue to hold in the lower end of the consolidation zone. The Shanghai Composite looks to be pausing in the uptrend while Emerging Markets reach for new all-time highs in their uptrend.

The Volatility Index looks to continue to hold in the normal range making it easier for equities to move higher, but with a drift higher. The charts of the SPY and the IWM remain strong on the longer timeframe with the QQQ starting to roll a bit lower. On the shorter timeframe all 3 are in consolidation ranges with the top at the highs but with negative momentum divergences that could lead to short term moves lower. 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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