Eleventh-Hour Call Buyers Target Amgen (AMGN)

Amgen, Inc. (AMGN) calls continue to be popular

Digital Content Group
Mar 20, 2015 at 11:40 AM
facebook X logo linkedin


Amgen, Inc.'s (NASDAQ:AMGN) attempt to block a biosimilar of its Neuopogen infection-prevention drug -- which is manufactured by Novartis AG (ADR) (NYSE:NVS) -- was rejected by a U.S. judge. AMGN shares, however, appear unfazed, up 0.8% at $170.51 -- and traders are flocking to the stock's options pits to wager on additional upside.

Diving right in, AMGN's intraday call volume quadruples the typical amount, and more than doubles the number of puts on the tape. Seeing the most attention is the March 165 call, where it seems traders are buying new positions, in hopes the stock will extend its lead north of $165 through tonight's close, when the front-month options expire. Based on the call's volume-weighted average price (VWAP) of $7, breakeven on the trade is $172 (strike plus VWAP).

Shifting our attention, AMGN is a long-term technical outperformer. On a year-over-year basis, the shares have jumped nearly 39% -- and are now within striking distance of their record peak of $173.14, touched in early December.

Taking a step back, today's preference for long calls echoes the withstanding trend witnessed in AMGN's options pits. Specifically, the equity's 10-day call/put volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is 2.12, with long calls more than doubling puts. What's more, the ratio is higher than 87% of comparable readings from the previous 52 weeks.

In other news, a joint venture between Amgen, Inc. (NASDAQ:AMGN) and Astellas Pharma Inc. has submitted an application to Japan's Ministry of Health, Labour and Welfare, seeking marketing approval for the cholesterol-fighting drug Repatha. The treatment is still awaiting approval in the U.S. and Europe.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI