Amgen (AMGN) Offering Possible 53.85% Return Over the Next 24 Calendar Days

Amgen's most recent trend suggests a bearish bias. One trading opportunity on Amgen is a Bear Call Spread using a strike $230.00 short call and a strike $235.00 long call offers a potential 53.85% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $230.00 by expiration. The full premium credit of $1.75 would be kept by the premium seller. The risk of $3.25 would be incurred if the stock rose above the $235.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Amgen is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Amgen is bearish.

The RSI indicator is below 20 which suggests that the stock is in oversold territory.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


Cancer Meeting Could Ignite These Biotech Stocks
Sat, 24 Oct 2020 10:00:00 +0000
Mirati Therapeutics will be widely-watched as it updates Phase 1 results for a lung cancer treatment that would compete against an important product in the pipeline from Amgen. Other early trial results will be reported.

3 Newly Recruited Dow Jones Stocks to Trade
Fri, 23 Oct 2020 17:29:04 +0000
“Make America Great Again?” It’s questionable lip service. And given the political, social and economic uncertainties still plaguing 2020 right now, I’m willing to walk the isle in-between bulls and bears. As such, let’s check in with three blue-chip stocks now enlisted as Dow Jones stocks and see what the price charts suggest as the best course of action.
The last presidential debate has come and gone, and it’s unlikely to have swayed a polarized voting public. We’re now also just 12 days out from Election Day. The outcome remains rife with uncertainty. Unfortunately, there’s also a strong chance of more political theater in the cards.
It’s a different story on Wall Street, though. A critical vote was decided this past month. That referendum was bullish and is typically great for the market and for investing in Dow Jones stocks. I’m referring to the historically significant and consistently strong follow-through day signal the major indices scored on Sept. 30.InvestorPlace – Stock Market News, Stock Advice & Trading Tips

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Follow-through days, or FTD’s, are incredibly robust. No major market bottom has occurred without one in place. Still, the technically driven event isn’t a guarantee of future profits. Just ask investors long DraftKings (NASDAQ:DKNG). The leading sport bettor outfit topped one day after the key market signal. While the broader market has climbed a couple percent in October, DKNG is off nearly 30%. A similar tale can be seen in recent hot-to-trot EV play Workhorse (NASDAQ:WKHS).
Honeywell International (NYSE:HON) (NYSE:CRM)
To be fair, up-and-coming growth plays aren’t alone in defying the market’s most recent FTD. Even blue-chips aren’t immune to pressure. IBM (NYSE:IBM) and Verizon (NYSE:VZ) are firmly in the red in October. And constituents Visa (NYSE:V), Chevron (NYSE:CVX) or Boeing (NYSE:BA) aren’t exactly killing it either. With that in mind, let’s visit the price charts of this bellwether’s newest recruits.

Dow Jones Stocks to Trade: Amgen (AMGN)

Source: Charts by TradingView
The first of our newly anointed Dow Jones stocks to trade right now is Amgen. The biotech giant’s long-term monthly chart reveals a stock that’s been in an uptrend since the financial crisis of 2008–2009. But in 2020 shares are showing signs of topping.
Technically, a bearish divergence in AMGN’s stochastics as the stock formed a higher-high relative to last December’s prior pivot top is a warning. Now, and with shares breaking beneath a three-month-long bearish-leaning consolidation pattern, this Dow Jones stock’s welcome mat looks to have disappeared.
I’d recommend short exposure in Amgen using the March $210/$190 bear put spread for protection. This strategy will help bears get through next Wednesday night’s earnings event with less financial and mental stress in anticipation of a larger correction towards trend support going into 2021.

Honeywell International (HON)

Source: Charts by TradingView
The next of our Dow Jones stocks to trade is Honeywell. Technically, the diversified technology and manufacturing outfit has been a workhorse within the bellwether. And there’s little to suggest HON stock can’t continue rallying to new highs.
Honeywell’s earnings are a week from today. The observation is HON’s V-shaped monthly base will see the stock break out to new highs in the report’s aftermath. Backing that view, stochastics are trending nicely higher within neutral territory. Also, shares of Honeywell are demonstrating relative strength and positioned less than 3% from the pattern’s all-time-high. In total, this is one Dow Jones stock that’s making the rights moves.

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To take advantage of an earnings catalyst, but also limit downside exposure through the quarterly release and November’s political theater, I’m bullish on the shorter-term Nov $180/$185 call vertical. (CRM)

Source: Charts by TradingView
The last of our Dow Jones stocks to trade is business software behemoth As with the election, I’m torn when it comes to CRM’s price chart and how I’d like to see the stock play out.
On the one hand, a steep and likely unsustainable rally since March’s Covid-19 double-bottom is at risk. Shares of Salesforce put together an overbought monthly doji decision candlestick in September. It’s the kind of technical evidence which could mark the end of a bullish cycle in CRM and the start of a larger corrective move. Or maybe not?
Alternatively, if 2020 and the past four years have proven anything, it’s that anything, including more momentum, is possible. And as a Dow Jones stock that’s first and foremost a blue-chip tech stock in a hot space, that shouldn’t be ignored.
With a week to go in October for a full monthly candle to form, price action shaping up as an inside consolidation and earnings a full month out, my advice is to wait until November to cast your bullish or bearish ballot in CRM stock.
On the date of publication, Chris Tyler does not hold, directly or indirectly, positions in any securities mentioned in this article.
Chris Tyler is a former floor-based, derivatives market maker on the American and Pacific exchanges. The information offered is based on his professional experience but strictly intended for educational purposes only. Any use of this information is 100%  the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.
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Hedge Fund Darling Mirati’s $5 Billion Stock Rally Set for Test
Fri, 23 Oct 2020 16:52:37 +0000
(Bloomberg) — Mirati Therapeutics Inc. has more than doubled from March lows, amassing a market value of over $8 billion, though it has yet to produce a marketable drug.The stock’s swift ascension will face a test this weekend when investors get a new look at results for an experimental medicine that works on a cancer target once thought to be “undruggable.”“Mirati has been one of the most frequently asked-about names within our coverage universe,” Anupam Rama, a JPMorgan Chase & Co. analyst, said ahead of the data. Investors are waiting to see if Mirati’s drug known as adagrasib, or MRTX849, can drive better responses in cancer patients than Amgen Inc.’s sotorasib. Early results in September from the biotech giant disappointed some vaunted expectations.Both medicines target mutations known as KRAS — most often found in lung tumors but also in colon and pancreatic growths. Mirati, which counts savvy health-care investors like Baker Bros Advisors LP, OrbiMed Advisors LLC and RTW Investments LP among its holders, will be reporting early stage-results Sunday at the EORTC-NCI-AACR Symposium on Molecular Targets and Cancer Therapeutics.After a more than 150% run-up from March, the risk-reward for Mirati shares is fundamentally “unfavorable,” according to Rama, who has an overweight rating on the stock. But with the biotech often on Wall Street M&A target lists and JPMorgan’s highly anticipated annual investor meeting in January — often a breeding ground for health-care sector deals — a “sell the news” scenario might be avoided, he said in a research note.A best-case scenario for MRTX849, and a potential win for patients, would be if the medicine could spur reponses in at least 40% of lung cancer patients who get it. That would be enough to differentiate the drug from sotorasib, which has shown around a 35% rate, according to a Piper Sandler survey.How long those responses last is also key. If they continue longer than 10 months, paired with a better response rate, the stock may reach above $240, according to the survey. Results that are inferior to Amgen’s drug could push shares back by more than 20%.Even if results disappoint, the Street widely expects Mirati as well as Amgen’s drugs to win U.S. regulatory approval, giving cancer patients new treatment options.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Healthcare to Post Solid Q3 Earnings Growth: ETFs in Focus
Fri, 23 Oct 2020 14:05:02 +0000
The healthcare is expected to witness substantial earnings growth of 5.1% in the third quarter, representing the second strongest sector this earnings season.

Amgen (AMGN) to Report Q3 Earnings: What's in the Cards?
Fri, 23 Oct 2020 12:25:12 +0000
Investors will focus on whether Amgen's (AMGN) sales have recovered in the third quarter from the COVID-19 effect.

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