Thursday Update: Focus On Amgen (AMGN)

With the advent of the trailing profit-taking stop exits there will be times when models will be flat, in cash waiting for new signals. Accordingly, I want to add one or two new stocks to each portfolio to avoid having too much cash on the sidelines at any one point in time. As you will read below, the first addition is coincidently to both the short and intermediate term portfolios, for reasons described below. 


Amgen is a $33B pharmaceutical company with, according to its 2016 annual report to shareholders, record earnings, revenues and cash flow. Year-to-date the stock is up about 25%, (by comparison, Bitcoin is up 330%, it doesn't make drugs, but is often used to buy them...wholesale). 

We are adding AMGN to both our two trading portfolios because its at-the-money options keep doubling on every buy and sell signal being generated. You don't have to take my word for it, these two charts speak for themselves. 

On these charts I've embedded the high/low maximum price that each signal saw before profit-taking kicked in. The combination of the signals and trailing profit-taking provided some substantial gains for both time frames. 

While the FANG stocks (Facebook, Apple, Netflix, and Google) have gone straight up for the past 18 months, AMGN has found its own path. Every turn in its dominant trend, whether it be upwards or downwards has generated enough positive points to at a minimum result in 100% option gains and as is shown in the charts, some of those trends have seen multiples of 100% returns before reversing trend. The chart above is our short-term 240 minute system, while the chart below is our intermediate term daily chart:

AMGN is a nice diversification among all of our stock in total, so it's finding a home in both portfolios. Prime susbcribers buy the October $170 puts. Classic subscribers buy the Dec $170 puts. 

Finally, note that GBTC, our Bitcoin ETF in the Special Situations portfolio, is knocking on the 100% gain door in less than one month.