DailyPlay – Opening Trade (AMGN) – February 5, 2025

AMGN Bullish Opening Trade Signal

Investment Rationale

Amgen Inc. (AMGN) recently broke out above its resistance level of $280 while outperforming the S&P 500, suggesting further upside on strong momentum.

AMGN is modestly undervalued fundamentally, trading in line with its industry median. However, recent growth suggests that estimates may be too low, supporting a higher valuation. The stock has a forward P/E ratio of 13.67, compared to the industry average of 12.86. Expected EPS growth for AMGN is 4.70%, while the industry average is higher at 8.61%. Expected revenue growth stands at 7.20%, compared to the industry average of 4.74%. Net margins for AMGN are 13%, matching the industry average.

The company announced earnings on Tuesday, beating estimates on both the top and bottom lines. Amgen benefited from an 11% year-over-year increase in product sales during the quarter. Despite a solid report, the stock price is showing weakness in after-hours trading.

AMGN – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Call

Details: Buy to Open 1 Contract AMGN April 17 $275 Call @ $20.23 Debit per Contract.

Total Risk: This trade has a max risk of $2,023 (1 Contracts x $2,023) based on a hypothetical $100k portfolio risking 2%. We suggest risking only 2% of the value of your portfolio and divide it by $2,023 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to bounce higher off recent support.

1M/6M Trends: Bullish/Neutral

Relative Strength: 5/10

OptionsPlay Score: 95

Stop Loss: @ $10.12 (50% loss 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 Tuesday ‘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