Here is your Bonus Idea with links to the full Top Ten:
Amgen (NASDAQ:AMGN), went through a series of higher highs and higher lows culminating with a peak in January. It pulled back from there to a bottom at the end of March. A failed bounce fell back to a higher low and then another move higher confirmed a double bottom with a push over the 200 day SMA. It continued higher then to a top just short of the January high. It has consolidated that move since. Friday saw it push back to the January high.
The RSI is rising in the bullish zone with the MACD crossing up and positive. The Bollinger Bands had squeezed and are now opening to allow a move. There is no resistance over 198.50. Support lower comes at 196.60 and 190.30. Short interest is low at 1.6%. The stock pays a 2.67% dividend and it begins trading ex-dividend on August 16th. The company is expected to report earnings next on October 23rd.
Looking at the options chains, the August chain shows big open interest at the 190 put and bigger at the 200 call establishing a wide range of possibilities for the next 2 weeks. The September chain has biggest open interest at the 175 and 180 put strike with it rising from 190 to 210 on the call side. October has notable open interest at the 200 and 210 call. And January, the first after the next earnings report, builds to 170 on the put side and is centered around 200 on the call side.
Amgen, Ticker: $AMGN
Trade Idea 1: Buy the stock on a move over 198.50 with a stop at 195.
Trade Idea 2: Buy the stock on a move over 198.50 and add a September 195/190 Put Spread ($1.70) while also selling a October 210 Call ($1.89) to fund it.
Trade Idea 3: Buy a August/October 200 Call Calendar for $2.95.
Trade Idea 4: Buy an October 200/210 Call Spread ($3.35) and sell the October 180 Put ($1.53)
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 heading into the dog days of August sees the equity markets are looking poised for a move.
Elsewhere look for Gold to possibly pause in the downtrend while Crude Oil holds at support in the uptrend. The US Dollar Index is in a possible reversal higher while US Treasuries are pulling back in consolidation. The Shanghai Composite is renewing its downtrend and Emerging Markets are bouncing in a pullback.
Volatility looks to remain very low keeping the bias higher for the equity index ETF’s SPY (NYSE:SPY), iShares Russell 2000 (NYSE:IWM) and PowerShares QQQ Trust Series 1 (NASDAQ:QQQ). Their charts also show strength with the SPY leading the charge in the short term, the IWM right behind it and the QQQ trying to reverse higher. 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.