AMGN is facing technical pressure on the charts ahead of a historically bearish period
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Biotech stock Amgen (NASDAQ:AMGN) has plenty of technical pressure in place on the charts, making now a good time to weigh in with puts. The $273 region, which also rejected the stock’s September highs, has kept a cap on gains all November, after the equity rallied following its breakdown from a July-October uptrend. AMGN also broke out of its recent uptrend on the hourly chart.
Also on the hourly chart, Amgen stock’s 200-hour moving average has been keeping a cap on price action, while its 20- and 50-hour trendlines are getting ready to move in as resistance. The equity also just failed at the 275-strike, which is the December peak call level.
Options look like a good way to go when weighing in on Amgen stock, too. The security sports a Schaeffer’s Volatility Index (SVI) of 19%, which ranks in the low 22nd percentile of its annual range, meaning options traders are pricing in low volatility expectations at the moment. The stock usually outperforms these volatility expectations, too, per its Schaeffer’s Volatility Scorecard (SVS) of 89 out of 100.
Our recommended put option has a leverage ratio of 14.8 and will double on a 5.7% drop in the underlying shares.