DailyPlay – Opening Trade (AMGN) – March 14, 2025

AMGN Bullish Opening Trade Signal

Investment Rationale

Amgen Inc. (AMGN) — A few weeks ago, we established a bullish play in AMGN. The stock recently showed strong momentum as it moved through its 200-day moving average, and we successfully closed that position for a profit. It has now pulled back from its recent high and is sitting on its 200-day moving average, which may act as a support level in the near term.

From a valuation perspective, AMGN appears moderately undervalued. It trades at a forward P/E ratio of 15.13, which is slightly above the industry average of 12.86. Although its expected EPS growth of 3.91% and expected revenue growth of 2.94% are below the industry averages of 8.61% and 7.74%, respectively, AMGN’s solid net margins of 12.24% compare well to the industry average of 13%. Recent growth trends indicate that current estimates may be too low, supporting a higher valuation.

AMGN – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 3 Contracts AMGN April 25 $310/$300 Put Vertical Spreads @ $3.30 Credit per Contract.

Total Risk: This trade has a max risk of $2,010 (3 Contracts x $670) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $670 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on an stock that is expected to continue higher over the duration of this trade.

1M/6M Trends: Bullish/Bullish

Relative Strength: 7/10

OptionsPlay Score: 87

Stop Loss: @ $6.60 (100% loss to value of premium)

View AMGN Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Thursday ‘s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View AMGN Trade