Spotlight on Amgen: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bullish stance on Amgen AMGN.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with AMGN, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 8 uncommon options trades for Amgen.

This isn't normal.

The overall sentiment of these big-money traders is split between 62% bullish and 37%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $79,726, and 6 are calls, for a total amount of $231,141.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $250.0 and $320.0 for Amgen, spanning the last three months.

Analyzing Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Amgen's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Amgen's significant trades, within a strike price range of $250.0 to $320.0, over the past month.

Amgen Call and Put Volume: 30-Day Overview

Largest Options Trades Observed:

About Amgen

Amgen is a leader in biotechnology-based human therapeutics. Flagship drugs include red blood cell boosters Epogen and Aranesp, immune system boosters Neupogen and Neulasta, and Enbrel and Otezla for inflammatory diseases. Amgen introduced its first cancer therapeutic, Vectibix, in 2006 and markets bone-strengthening drug Prolia/Xgeva (approved 2010) and Evenity (2019). The acquisition of Onyx bolstered the firm's therapeutic oncology portfolio with Kyprolis. Recent launches include Repatha (cholesterol-lowering), Aimovig (migraine), Lumakras (lung cancer), and Tezspire (asthma). The 2023 Horizon acquisition brings several rare disease drugs, including thyroid eye disease drug Tepezza. Amgen also has a growing biosimilar portfolio.

Current Position of Amgen

• With a trading volume of 714,396, the price of AMGN is up by 1.19%, reaching $278.46.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 40 days from now.

Professional Analyst Ratings for Amgen

A total of 4 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $316.5.

• Showing optimism, an analyst from RBC Capital upgrades its rating to Outperform with a revised price target of $300.
• An analyst from Daiwa Capital upgraded its action to Buy with a price target of $320.
• Reflecting concerns, an analyst from Truist Securities lowers its rating to Buy with a new price target of $320.
• Showing optimism, an analyst from BMO Capital upgrades its rating to Outperform with a revised price target of $326.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Amgen with Benzinga Pro for real-time alerts.