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Why AMGN Is an Excellent Covered Call Candidate Right Now Strong · 80/100
Amgen Inc (Healthcare) · $385.16 ·
Analysis generated Jul 31, 2026 ·
Data as of market close Jul 31
Quick Take
AMGN is trading at $385.16 with RSI at 65 (neutral territory). Options IV is at 26% — 59% below its 30-day average of 65%. 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)
65
IV Today
26.5%
IV vs 30d Avg
-59%
MACD
bullish
ADX
24
MFI
59
The Setup
AMGN Covered Call
LONG STOCK
100 shares @ $385.16
SHORT CALL
$415 Sep '26 · $6.89/sh
Net Cost
$37,827
Max Profit
+$3,673
Break-even
$378.27
Projected P&L at Target
+$3,673
(9.7%)
P&L at Expiry
P&L Scenarios
What happens at different AMGN prices by expiry:
| AMGN Price | Today | Aug 17 | Sep 2 | Sep 18 (exp) |
|---|---|---|---|---|
| $308 (-20%) | -$7,020 | -$7,015 | -$7,014 | -$7,014 |
| $327 (-15%) | -$5,117 | -$5,094 | -$5,088 | -$5,088 |
| $347 (-10%) | -$3,273 | -$3,199 | -$3,165 | -$3,163 |
| $366 (-5%) | -$1,553 | -$1,388 | -$1,264 | -$1,237 |
| $377 (-2%) | -$619 | -$386 | -$168 | -$81 |
| $385 (0%) ← now | -$48 | +$228 | +$519 | +$689 |
| $393 (+2%) | +$475 | +$791 | +$1,154 | +$1,459 |
| $404 (+5%) | +$1,167 | +$1,527 | +$1,976 | +$2,615 |
| $415 (+8%) ← target | +$1,699 | +$2,078 | +$2,561 | +$3,673 |
| $424 (+10%) | +$2,063 | +$2,443 | +$2,919 | +$3,673 |
| $443 (+15%) | +$2,664 | +$3,000 | +$3,376 | +$3,673 |
| $462 (+20%) | +$3,031 | +$3,294 | +$3,539 | +$3,673 |
Why This Strategy, Why Now
- RSI at 65 — extended, ideal for selling calls
- IV -59% vs avg — premiums below average, less income
- MACD bullish — stock has upward momentum
- ADX at 24 — moderate trend
- No squeeze — no imminent breakout
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.