Wide Trading Range For Amgen Stock Makes This Option Shine

Blockhead03:06

Amgen (AMGN) posted earnings that were better than expected last month. But additional comments about how well the company is competing in the Alzheimer's space pushed prices deep into support ...

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But additional comments about how well the company is competing in the Alzheimer's space pushed prices deep into support ...</p>\n\n<a href=\"https://www.investors.com/research/options/amgen-stock-iron-condor-rangebound/\">Source Link</a>\n\n</div>\n","source":"investor_business_daily_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Wide Trading Range For Amgen Stock Makes This Option Shine</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWide Trading Range For Amgen Stock Makes This Option Shine\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-30 03:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.investors.com/research/options/amgen-stock-iron-condor-rangebound/><strong>Blockhead</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Amgen (AMGN) posted earnings that were better than expected last month. But additional comments about how well the company is competing in the Alzheimer's space pushed prices deep into support ...</p>\n\n<a href=\"https://www.investors.com/research/options/amgen-stock-iron-condor-rangebound/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00BJJMRZ35.SGD","symbol_name":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"I2\" (SGDHDG) ACC","start_time":0,"source_url":"https://www.investors.com/research/options/amgen-stock-iron-condor-rangebound/","article_id":"2487659622","we_media_id":null,"thumbnails":["https://www.investors.com/wp-content/uploads/2018/01/Stock-amgen-01-shutt-150x150.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2487659622","pubTimestamp":1732907217,"sourceInfo":{"source_id":"investor_business_daily_highlight","name":"Investor’s Business Daily"},"weMediaInfo":null,"summary":"Even though Amgen is weak below the 200-day line, there's still a way to profit.","collect":0,"end_time":0,"defaultTopTitle":"investors.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00BJJMRZ35.SGD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"I2\" (SGDHDG) ACC","IE00BFTCPJ56.SGD":"Janus Henderson Global Life Sciences A Acc SGD","BK4581":"高盛持仓","SG9999001440.SGD":"United Global Dividend Equity Fund A SGD Dist","LU2242652126.USD":"FIDELITY FUNDS GLOBAL DIVIDENDS PLUS \"A\" (USD) INC","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","LU0889565916.HKD":"FRANKLIN BIOTECHNOLOGY DISCOVERY \"A\" (HKD) ACC","LU1983299246.USD":"SCHRODER ISF HEALTHCARE INNOVATION \"A\" (USD) ACC","AMGN":"安进","LU2112291526.USD":"BGF WORLD HEALTHSCIENCE \"A4\" (USD) INC","LU1023059063.AUD":"BGF WORLD HEALTHSCIENCE \"A2\" (AUDHDG) ACC","LU2242646821.SGD":"Fidelity Global Dividend Plus A-MINCOME(G)-SGD","BK4599":"减肥药","IE00B4R5TH58.HKD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"A2\" (HKD) ACC","IE0009355771.USD":"骏利亨德森环球生命科技A Acc","LU0320765992.SGD":"FTIF - Franklin Biotechnology Discovery A Acc SGD","LU0289739699.SGD":"AB INTERNATIONAL HEALTH CARE PORTFOLIO \"A\" (SGD) ACC","LU1057294990.SGD":"Blackrock World Healthscience A2 SGD-H","BK4534":"瑞士信贷持仓","BK4585":"ETF&股票定投概念","IE00B2B36J28.USD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"I1\" (USD) INC","BK4139":"生物科技","IE00BJT1NW94.SGD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"A2\" (SGDHDG) ACC","LU0109394709.USD":"富兰克林生物科技新领域基金A (acc)","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4566":"资本集团","LU0058720904.USD":"联博国际健康护理基金A","LU1061106388.HKD":"BGF WORLD HEALTHSCIENCE \"A2\" (HKDHDG) ACC","BK4588":"碎股","LU0868494617.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) ACC","LU0122379950.USD":"贝莱德世界健康科学A2","IE0002141913.USD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"I2\" (USD) ACC"},"translate_title":"安进股票的广泛交易范围使这一选择大放异彩","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMGN":1},"content_text":"Amgen (AMGN) posted earnings that were better than expected last month. But additional comments about how well the company is competing in the Alzheimer's space pushed prices deep into support territory not seen since April 2024. Because Amgen stock has heavy institutional ownership, this allows us a unique opportunity to capture time value as the stock regains its footing.\n\n\n\n↑\nX\n\n\n\n\nThinkorswim Trading Dashboard Walkthrough With Anne-Marie Baiynd\n\n\nSee All Videos\n\n\n\n\nNOW PLAYING\nThinkorswim Trading Dashboard Walkthrough With Anne-Marie Baiynd\n\n\n\n\nOnce again, we'll use a short iron condor that trades the wider ranges in Amgen. As traders move back in with some caution into ranges of resistance above, while holding supports below, we'll capture premium and benefit from time passing, assuming the range holds.\nAmgen Stock Today: Betting On Rangebound\nWhen we position with short iron condors, we attempt to collect time decay while a chart bases or settles into a new direction. As always, we assume that we don't know the direction but are able to estimate the magnitude of the move using the ATR (average true range, measured on the weekly chart). We also lean on the implied moves that market makers price in over the months ahead.\nAccording to IBD Stock Checkup, Amgen stock holds a 59 Composite Rating, a 73 Earnings Per Share Rating and a 22 Relative Strength Rating. Not the best ratings, but we aren't looking for a bullish move here. We're more interested in Amgen staying in a range.\nLet's look at a trade structure we can use for this option trade on Amgen. A short iron condor consists of two spreads: a short call spread and a short put spread. Together they define a range of motion that we estimate the price action will not exceed.\n\nBuy to open one Amgen Feb. 21 call at a 305 strike.\nSell to open one Amgen Feb. 21 call at a 300 strike.\nSell to open one Amgen Feb. 21 put at a 250 strike.\nBuy to open one Amgen Feb. 21 put at a 245 strike.\n\nAt this writing the credit received is $2.30 per share. This represents the maximum profit we can collect on the trade. With this kind of position we collect a premium, and as this premium erodes we secure that revenue from the position.\nRisk Calculation\n\nCalculate maximum risk in the following way. Start with the distance between the strikes. Here both spreads are the same at 5.\nThen you simply subtract the credit received from the distance of the strikes. In this case, the maximum loss is 2.70.\n\nWhat A Trump/Musk Plan For Government Efficiency Could Mean For Stocks\n\nThe break-even prices for this trade are calculated in the following way: short call strike plus the premium we collected and short put strike minus the premium we collected. That is 300 + 2.30 = $302.30 and 250 - 2.30 = $247.70.\nStock-hunting using fundamental and price strength within The IBD Methodology is where I firmly plant myself under the current economic backdrop. I use technical analysis to find ideal buying opportunities in conjunction with the tools for strength seen in IBD.\nTrade Management \nAmgen fell to the bottom of a wide range near 250 this week and could extend below the break. But it's likely to return to the value area where much of the volume sits as support.\nWe see a fair amount of resistance at a round number near 300. Uncertainty into the next cycle of earnings may well keep us below this number in the short term. This range between 250 and 300 is where we set our short strikes and a close between those two areas at expiration gives us our maximum profit of the premium received.\nThe strategy provides three choices to exit the trade:\n\nBuy back the iron condor once it gets to an acceptable profit margin for you. I customarily look for 30%-60% profit for these kinds of trades in the current environment of volatility.\nBuy back the iron condor once it hits a loss threshold as determined by personal risk. This will happen with extreme movement. I customarily look at about 65%, although depending on my size I will choose 50%. \nBuy back the spreads into the week before expiration, if all is going well and you have decided to hold the trade closer to the end of expiration. I have had many trades go sideways, taking them down to the wire and not capturing gains, so I do not advise this.\n\nAnne-Marie Baiynd is a 20-year veteran trader of stocks, options and futures and is the author of \"The Trading Book: A Complete Solution to Mastering Technical Systems and Trading Psychology.\" She holds no positions in the investments she writes about for IBD. You can find her on  X at @AnneMarieTrades\nYOU MIGHT ALSO LIKE:\nInside IBD Big Cap 20\nFind The Best Growth Stocks Via This Highly Stringent Screen\nWant More Options Trading Strategies? Go Here\nSwing Trader Weekly Update: Why Now Is The Time To Be Aggressive\nHere's The Latest IBD Podcast With A Rules-Based Approach To Investing","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2487659622"}