April 26, I am going to open a position on AMGEN. According to Mornigstar valuation, AMGN is trading about 12% under is fair value ($205).
I start with my usual preliminary analysis just to see where buyers and sellers place their trades.
Open Interest Chart
OTM call @185 (potential resistance) ; OTM put @180 and 175 (potential support)
As usual I’ll try to stay 1 STD.
Option Volume Chart
Good volume @175 but over my STD. I am going to find my strike at 172.5 or at 170 ( more conservative).Premium are high in both strike.
Max Pain @180
Conclusion : sold 1 CSP , strike [email protected] . Expiry May 3 . Weekly return 0.55% AROI 28%.