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AMGN Covered Call Strategy: Is Now a Good Time to Sell Calls? Moderate · 70/100
Amgen Inc (Healthcare) · $433.73 ·
Analysis generated Aug 21, 2026 ·
Data as of market close Aug 21
Quick Take
AMGN is trading at $433.73 with RSI at 80 (overbought territory). Options IV is at 29% — 57% below its 30-day average of 67%. 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)
80
IV Today
28.8%
IV vs 30d Avg
-57%
MACD
bullish
ADX
42
MFI
71
The Setup
AMGN Covered Call
LONG STOCK
100 shares @ $433.73
SHORT CALL
$470 Oct '26 · $7.85/sh
Net Cost
$42,588
Max Profit
+$4,412
Break-even
$425.88
Projected P&L at Target
+$4,412
(10.4%)
P&L at Expiry
P&L Scenarios
What happens at different AMGN prices by expiry:
| AMGN Price | Today | Sep 8 | Sep 27 | Oct 16 (exp) |
|---|---|---|---|---|
| $347 (-20%) | -$7,900 | -$7,891 | -$7,890 | -$7,890 |
| $369 (-15%) | -$5,765 | -$5,731 | -$5,721 | -$5,721 |
| $390 (-10%) | -$3,700 | -$3,605 | -$3,556 | -$3,552 |
| $412 (-5%) | -$1,781 | -$1,582 | -$1,421 | -$1,384 |
| $425 (-2%) | -$734 | -$462 | -$192 | -$82 |
| $434 (0%) ← now | -$94 | +$227 | +$581 | +$785 |
| $442 (+2%) | +$498 | +$862 | +$1,298 | +$1,652 |
| $455 (+5%) | +$1,286 | +$1,701 | +$2,238 | +$2,954 |
| $470 (+8%) ← target | +$2,023 | +$2,466 | +$3,058 | +$4,412 |
| $477 (+10%) | +$2,327 | +$2,772 | +$3,363 | +$4,412 |
| $499 (+15%) | +$3,052 | +$3,462 | +$3,960 | +$4,412 |
| $520 (+20%) | +$3,516 | +$3,853 | +$4,203 | +$4,412 |
Why This Strategy, Why Now
- RSI at 80 — extended, ideal for selling calls
- IV -57% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 42 — strong trend, stock may run past strike
- 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.
ADX at 42 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.