Schaeffer's Top Stock Picks for '25

Option Bears Turn Up the Heat on Amgen, Inc. (AMGN)

Short-term traders are once again targeting Amgen, Inc. (AMGN) put options

Mar 9, 2016 at 2:19 PM
facebook X logo linkedin


Amgen, Inc. (NASDAQ:AMGN) is in focus today, as biotech stocks struggle amid potential changes to Medicare Part B reimbursements. At last check, the shares have fallen 2.7% to trade at $140.78, while option traders are rolling the dice on the stock's end-of-week trajectory.

Taking a quick step back, AMGN puts are crossing the tape at triple the normal intraday rate, and nearly doubling the number of calls traded so far. The stock's most active option is the weekly 3/11 140-strike put, where it seems speculators are buying to open contracts -- expecting the stock will settle below $140 this Friday afternoon, when the weekly series expires.

It's nothing new for AMGN option traders to be purchasing puts. In fact, the stock's 10-day put/call volume ratio of 0.98 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) outstrips 94% of comparable readings from the last year. Echoing this preference for bearish bets over bullish is AMGN's Schaeffer's put/call open interest ratio (SOIR) of 1.09. Not only does this SOIR mean short-term puts outnumber calls, but the ratio likewise sits just 3 percentage points from an annual put-skewed peak.

Skepticism can be detected outside of the options arena, as well. In fact, three-fifths of covering analysts consider AMGN worthy of a lukewarm "hold" rating.

There's a reason that Wall Street has failed to get behind Amgen, Inc. (NASDAQ:AMGN). Specifically, the stock has performed poorly on the charts, losing over 13% year-to-date.

Sign up now for Schaeffer's Market Recap to get all the day's big stock movers, must-know technical levels, and top economic stories straight to your inbox.

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?