Learn the trade here. Make it on tradeMONSTER

Options Trading News

December 18, 2012  Tue 2:45 AM CT

AMGN: SEE CHART GET CHAIN FIND STRATEGIES
Amgen is near its highs of the year, and one trader is betting that the biotechnology company will hold onto most of its gains by the end of this week.

Nearly 2,500 December 87.50 puts were sold mostly for $0.17 yesterday, according to optionMONSTER's systems. The volume was above the strike's open interest of 1,636 contracts at the beginning of the day, indicating new activity.

AMGN rose 0.34 percent yesterday to end the session at $89.50. Shares bounced off support at the $84 level in mid-November and have been trending higher since then, hitting a 52-week high at $90.17 last Wednesday.

After last Thursday's close, Amgen said it was raising its quarterly dividend by 31 percent. It also announced it would repurchase $2 billion of its shares, in addition to an an existing $10 billion stock-buyback plan.

Yesterday's put sellers are looking for the stock to be above the $87.50 strike price at expiration upon this Friday's close. The traders will face the obligation to buy shares if they are below that level for an effective price of $87.33 including the credit from the put sale. (See our Education section)
Share this article with your friends


Related Stories

AMGN

Cramer: Party on, biotech!

August 15, 2014

Slowing economic data and low is good news for companies like Amgen and Celgene.

AMGN

Amgen rally gets cool reception

August 11, 2014

The biotech stock is trying to advance, but traders have been writing calls.

Premium Services

Education & Strategy

It's all skewed up

Most new option traders know little about implied volatility, and learn the hard way. Today we want to help you...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER