• Chart of the Day – Reader Request Edition: Amgen Inc. (AMGN)

    by  • March 22, 2013 2:44 pm • Charts to Watch, Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart comes courtesy from a number of reader requests for Amgen Inc. (AMGN) which is a  biotechnology medicines company, engages in the discovery, development, manufacture, and marketing of human therapeutic products in the areas of supportive cancer care, inflammation, nephrology, and bone diseases primarily in the United States, Europe, and Canada.

    Ticker:  Amgen Inc. (AMGN)

    What I Am Looking At:

    • iShares Nasdaq Biotechnology (IBB) showing relative strength thus far this year
    • Outperformance on a year-over-date basis, +42 percent, and up more than 11 percent year-to-date
    • Making all-time highs today, what’s not to like
    • Solid breakout from the 8-month long trading zone between $80-$90
    • Mid-March pullback to the round number $90 level proved to be a solid entry on the long side
    • $100 century level could act as a potential magnet for AMGN’s next target
    • Sentiment among the analyst community is lukewarm as 13 out of 25 rate the shares a “hold” or worse
    • Call open interest for the April series resides at strikes all the way to $105, possible delta-hedging rally may be in effect
    • 10-day buy-to-open put/call ratio ranks in the 90th percentile of all readings taken during the past year, an indication of an extreme in pessimism
    • Reports earnings April 23rd, unconfirmed

    Strategy:  Look to buy pullbacks

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    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.


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