AAL

Buy the Dip on This New Dow Stock

AMGN options are affordably priced to boot

Digital Content Manager
Oct 12, 2020 at 2:14 PM
facebook X logo linkedin


The shares of blue chip Amgen, Inc. (NASDAQ:AMGN) are up 1.8% at $241.07 this afternoon. However, the biopharmaceutical stock has traded sideways the past few months after hitting an all-time-high of $264.97 on July 6, and is off by 5.2% this quarter. The good news is that this pullback has the stock near a historically bullish trendline, which could help the security surge even higher in the coming weeks.

Specifically, Amgen stock just came within one standard deviation of its 160-day moving average, after spending the past several months floating above the trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, three similar signals have occurred during the past three years. More often than not, AMGN enjoyed positive returns one month after each signal, averaging a roughly 4% gain. From of its current perch, a move of similar magnitude would put the security just above $250 -- a new record high.

AMGN 160

While the majority of analysts covering AMGN are already bullish, there is still plenty of room for upgrades and price-target hikes going forward, which could propel the equity higher. Of the 21 in coverage,  nine say "hold" or worse. Plus, the 12-month consensus price target of $260.79 is only a 8% premium to current levels.

For those wanting to take advantage of Amgen stock's next leg higher, options could be an interesting play. The stock's Schaeffer's Volatility Index (SVI) of 35% sits higher than just 28% of readings in its annual range, suggesting short-term options are pricing in relatively low volatility expectations.

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.