Amgen Stock (AMGN)
In the market plunge, Amgen Stock (AMGN) hardly fell. It closed at $460.28. Since then the stock has been trying to rally and today the stock has made a new high. My trade in 12% below, down at the $410 put strike. Long puts are not filled and I may have to move higher or lower to get some in place. I am not concerned about holding 4 puts naked until long puts are filled.
TRADE OVERVIEW
– Strategy: Credit Put Spread
– Equity: Amgen Stock (AMGN)
– Appx Entry Price: $467.00
– Date Opened: Wed Nov 11 2026
– Trade Expiry: Dec 18 2026
– Next Earnings: Feb 1 2027
– Percent Of Protection: 12.2%
– Max Profit: $796.00
– Return On Capital: 3.98%
POSITION SETUP
– Short Puts: Sold 4 put contracts for Dec 18 2026 expiry at the $410.00 put strike for an average of $2.24 = $896.00
– Long Puts: There are offers left open to buy 4 put contracts for Dec 18 2026 expiry at the $360.00 put strike for $0.25 = ($100.00)
*prices may reflect an average received
– Spread Summary: This forms a $50.00 credit put spread returning 3.98% earning $796.00 if held to expiry on Dec 18 2026
RISK & RETURN
– Max Profit: $796.00
– Return On Capital: 3.98%
– Net Credit Per Spread: $199.00
– Spread Width: $50.00
– Capital At Risk: $20,000.00
– Maximum Loss: $19,204.00
KEY LEVELS
– Short Put Strike: $410.00
– Break-even Price: $407.51
– Current Price Buffer: $57.00
– Percent Of Protection: 12.2%
TRADE MANAGEMENT
– Buy To Close Short Put Early for: $0.87 to start
– Adjustment Plan: Reduce buyback price as expiry approaches
– Always Close: If short put falls below 10 cents a week or more before expiry
– Hold To Expiry: Maximum profit if equity remains above $410.00 put strike to expiry on Dec 18 2026
– Stop-Loss: Potential Stop-Loss could be used. Investor should decide how much they are willing to lose on a trade. Example for this trade is perhaps $6.14
Disclaimer: No commissions are taken into account in these trades. Remember do your own due diligence. I am not a financial planner or advisor and have no financial accreditations. Nothing you read are recommendations. FullyInformed.com is for educational and entertainment purposes only.
Questions? Use ASK TEDDI
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. You always trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. The author assumes no liability for your investment decisions. Read the full disclaimer.