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AMGN Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 70/100
Amgen Inc (Healthcare) · $402.60 ·
Analysis generated Oct 7, 2026 ·
Data as of market close Oct 7
Quick Take
AMGN is trading at $402.60 with RSI at 47 (neutral territory). Options IV is at 28% — 51% below its 30-day average of 58%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
47
IV Today
28.4%
IV vs 30d Avg
-51%
MACD
bullish
ADX
24
MFI
71
The Setup
AMGN Covered Call
LONG STOCK
100 shares @ $402.6
SHORT CALL
$435 Dec '26 · $7.7/sh
Net Cost
$39,490
Max Profit
+$4,010
Break-even
$394.90
Projected P&L at Target
+$4,010
(10.2%)
P&L at Expiry
P&L Scenarios
What happens at different AMGN prices by expiry:
| AMGN Price | Today | Oct 31 | Nov 24 | Dec 18 (exp) |
|---|---|---|---|---|
| $322 (-20%) | -$7,323 | -$7,290 | -$7,282 | -$7,282 |
| $342 (-15%) | -$5,394 | -$5,307 | -$5,271 | -$5,269 |
| $362 (-10%) | -$3,566 | -$3,389 | -$3,273 | -$3,256 |
| $382 (-5%) | -$1,900 | -$1,604 | -$1,338 | -$1,243 |
| $395 (-2%) | -$1,002 | -$634 | -$251 | -$35 |
| $403 (0%) ← now | -$452 | -$40 | +$422 | +$770 |
| $411 (+2%) | +$56 | +$507 | +$1,041 | +$1,575 |
| $423 (+5%) | +$740 | +$1,234 | +$1,851 | +$2,783 |
| $435 (+8%) ← target | +$1,337 | +$1,854 | +$2,510 | +$4,010 |
| $443 (+10%) | +$1,669 | +$2,189 | +$2,845 | +$4,010 |
| $463 (+15%) | +$2,353 | +$2,845 | +$3,427 | +$4,010 |
| $483 (+20%) | +$2,831 | +$3,260 | +$3,710 | +$4,010 |
Why This Strategy, Why Now
- RSI at 47
- IV -51% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 24 — moderate trend
- No squeeze — no imminent breakout
- MFI at 71 — 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.