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Carter Worth And Mike Khouw's Amgen Trade

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Carter Worth And Mike Khouw's Amgen Trade

On CNBC's Options Action, Carter Worth analyzed Amgen, Inc. (NASDAQ: AMGN) from a technical standpoint.

He said that the stock consistently outperformed iShares NASDAQ Biotechnology Index (ETF) (NASDAQ: IBB), which is in his opinion a basis for a bullish setup. Worth believes the stock is going to break out on the upside and reach its highs at $181.

Related Link: Biotech In The Earnings Spotlight: Amgen, Celgene, Gilead Sciences

Mike Khouw thinks the best way to make a bullish bet is by selling the October 165 put for $6.70. The trade starts to lose money below $158.30, or 4.45 percent lower from the current stock price. If Amgen stays above $165 at the October expiration, Khouw is going to collect 4 percent in three months.

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