Carter Worth And Mike Khouw's Amgen Trade

Carter Worth spoke on CNBC's "Options Action" about Amgen, Inc. AMGN.

He said the stock has been by far the best performing stock in the market in the last 30 years and he thinks it has more room on the upside. In the last two years, Amgen has been in a consolidation period and Worth believes that it's creating a set up for a strong move higher. He thinks the stock is going to break out on the upside.

Khouw suggested a bullish options strategy. He wants to buy the September 160/175 call spread for $4.65. The trade breaks even at $164.65 or 3.46 percent higher. It can make a maximal profit of $10.35, if the stock jumps to $175 or higher at the September expiration.