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AMGN Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 70/100
Amgen Inc (Healthcare) · $466.01 ·
Analysis generated Oct 30, 2026 ·
Data as of market close Oct 30
Quick Take
AMGN is trading at $466.01 with RSI at 71 (overbought territory). Options IV is at 32% — 50% below its 30-day average of 63%. While the stock is extended, IV is below average which means premiums aren't as rich. The trade still works but yields less income than usual.
Technical Signals
RSI (14)
71
IV Today
31.8%
IV vs 30d Avg
-50%
MACD
bullish
ADX
35
MFI
75
The Setup
AMGN Covered Call
LONG STOCK
100 shares @ $466.01
SHORT CALL
$500 Dec '26 · $8.9/sh
Net Cost
$45,711
Max Profit
+$4,289
Break-even
$457.11
Projected P&L at Target
+$4,289
(9.4%)
P&L at Expiry
P&L Scenarios
What happens at different AMGN prices by expiry:
| AMGN Price | Today | Nov 16 | Dec 2 | Dec 18 (exp) |
|---|---|---|---|---|
| $373 (-20%) | -$8,449 | -$8,433 | -$8,430 | -$8,430 |
| $396 (-15%) | -$6,175 | -$6,119 | -$6,101 | -$6,100 |
| $419 (-10%) | -$3,997 | -$3,858 | -$3,779 | -$3,770 |
| $443 (-5%) | -$1,998 | -$1,733 | -$1,508 | -$1,440 |
| $457 (-2%) | -$922 | -$575 | -$223 | -$42 |
| $466 (0%) ← now | -$266 | +$131 | +$572 | +$890 |
| $475 (+2%) | +$336 | +$776 | +$1,299 | +$1,822 |
| $489 (+5%) | +$1,134 | +$1,620 | +$2,233 | +$3,220 |
| $500 (+7%) ← target | +$1,659 | +$2,162 | +$2,804 | +$4,289 |
| $513 (+10%) | +$2,184 | +$2,686 | +$3,317 | +$4,289 |
| $536 (+15%) | +$2,915 | +$3,365 | +$3,874 | +$4,289 |
| $559 (+20%) | +$3,386 | +$3,750 | +$4,098 | +$4,289 |
Why This Strategy, Why Now
- RSI at 71 — extended, ideal for selling calls
- IV -50% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 35 — strong trend, stock may run past strike
- No squeeze — no imminent breakout
- MFI at 75 — money flow confirms overbought
Key Risks
AMGN has bullish momentum (MACD). If a positive catalyst emerges (earnings beat, product launch), the stock could gap past your strike. Consider rolling the call up if AMGN approaches the strike before expiry.
ADX at 35 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.