Here is your Bonus Idea with links to the full Top Ten:
Amgen (NASDAQ:AMGN), $AMGN, has been making a series of higher highs and higher lows since staring to move up at the beginning of 2017. It took until February 2017 to make the first new high and since then there have been 3 additional new highs. All of this action has left the stock marginally higher that the channel it spent 2016 in.
Last week it pulled back into its earnings report and then after reporting Thursday held in place and printed a bullish engulfing candle Friday. This with the broad market falling over 3% for the week, mostly the last 2 days. Momentum has stopped falling with the RSI halting at the mid line while the MACD continues lower, but remains positive.
A Measured Move to the upside would give a target to 207 with the October high and the high last week as the only resistance along the way. Support lower sits at 183 then 180 and 173.50, with a reversal of the uptrend on a move under 168.75. Short interest is low at 1.3% and the stock begins trading ex-dividend on February 14th.
The February 9 Expiry options chain show the biggest open interest at the 180 and 177.5 Put strikes with a cluster from 195 to 202.5 on the Call side. The February monthly options range from 175 to 190 on the Put side and are bigger at 185 and 200 on the call side with good size in between. March options are focused from 175 to 185 on the Put side and build from 185 to a big top at 200 on the call side. April options are much bigger on the Call side and rise from 185 to 200 but are biggest at 240.
Amgen, Ticker: $AMGN
Trade Idea 1: Buy the stock now (over 183) with a stop at 180.
Trade Idea 2: Buy the stock and add a February monthly 185/175 Put Spread for protection ($2.60) while selling an April 200 Call ($2.30) to pay for the protection.
Trade Idea 3: Buy the March 180/190/200 Call Spread Risk Reversal ($0.20, buying the 190/200 call spread and selling the 180 put).
Trade Idea 4: Buy the February/April 195 Call Calendar ($3.30).
After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which as February starts sees equities have experienced their first pullback of more than 3% since what feels like forever, with technicals suggesting the pain may not be over yet.
Elsewhere look for Gold to consolidate in its uptrend while Crude Oil pauses in its uptrend as well. The US Dollar Index downtrend has hit new lows but may be ready for a bounce while US Treasuries are accelerating lower. The Shanghai Composite and Emerging Markets are are pulling back in their uptrends.
Volatility looks to continue higher keeping the pressure on the equity index ETF’s SPY (NYSE:SPY), IWM and QQQ. Their charts show pauses in the uptrend in the longer timeframe with pullbacks in the shorter one ready to continue next week. Use this information as you prepare for the coming week and trad’em well.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.