Amgen reports earnings today, and some traders have already
chalked up profits in the stock.
optionMONSTER's Heat Seeker system detected unusual activity in the
February 80 calls, with buyers paying $2.91 to $2.97 early in the
such as these lock in the price where investors can get buy stock,
so they can generate big profits on a percentage basis in the event
of a rally. (See our
And that's exactly what happened yesterday in AMGN. The biotech
giant started climbing shortly after the options traded, and those
calls ended the session worth $4.10--a gain of more than 35
percent. The stock rose less than 2 percent in the intervening
hours, which illustrates the kind of leverage that options can
AMGN, which was down slightly when the trades occurred, closed the
session up 1.47 percent to $83.29. The stock fell on Jan. 8 after
the company had cut its guidance because of a tax credit, but
management remained sanguine over the longer term. That could be
leading some investors to expect a positive report this afternoon.
Total option volume in the name was almost 9 times greater than
average in the session.
(A version of this post appeared on
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