$140 profit in AMGN
- themoneyloaf
- 1 day ago
- 3 min read
Happy weekend!
Just a reminder that the window to indicate your interest in my next course is ongoing, and the link to do so is here.
Before getting into this week's trade, I also wanted to share a wrap up of the last course which ran from 1 April to 20 May.
All together 8 trades and 1 bonus trade were placed, and nearly all have been closed for a profit.
The remaining PG trade was placed literally the day before the course ended and has already reached my usual 50% profit target, but I'm letting it run a little more.
In 2026 I started a new initiative to share a minimum of 5 profitable trades from beginning to end with each course, and this was once again delivered with this past course in April.
If you'd like to indicate your interest in the last options course of 2026, you can do so at this link.
With that out of the way, on to this week's trade update.
This week:
$140 profit in Amgen (AMGN)
$140 profit in AMGN
AMGN reported their earnings in May, and the stock dropped nearly 5% following their announcement.
When a stock drops this much, its volatility jumps and pushes up the price of the options, which can provide a good entry point.
I sold the $300 cash-secured put expiring on Jun 18 for $280 in premium upfront.
Sometimes (but not always), the market realizes that the initial reaction to earnings is overdone, and the stock begins to rally after they get over the first couple of days.
When this happens, volatility drops which provides the opposite effect on option prices and brings them lower.
That's exactly what happened here. The option I sold for $280 quickly dropped down to $140 which means AMGN hit my profit target of 50% in just 8 trading days.
As you can see from the screenshot above, I bought back the option for $140 which means I realized a profit of $140, or exactly 50% profit. This trade was placed during the course and is the same AMGN trade shown in the first screenshot.
Although I was considering letting this trade run for more profit, the market in May felt a bit high to me, so I wanted to close a few positions and free up some capital so that I could be ready to redeploy them later.
This trade (and all trades in this newsletter) are shared in close-to real time to my private community as updates in my own portfolio (not recommendations). If you're familiar with the basic mechanics of options, you can consider joining the private community to view these updates as well.
And of course the guidance for managing and closing both trades were posted to the community as well.
You can find out more about my private community at the link below.
Have a good weekend!
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This article is for educational purposes only. This is my own portfolio which is being managed according to my goals and risk tolerance. Your situation is likely different and you should do your own due diligence before investing in stocks or options.
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