AMGN Bear Put Spread Strategy
AMGN (Amgen Inc.), in the Healthcare sector, (Drug Manufacturers - General industry), listed on NASDAQ.
Amgen Inc., established in 1980 and headquartered in Thousand Oaks, California, is a global biotechnology leader focused on discovering, developing, manufacturing, and delivering groundbreaking human medicines. The company's scientific endeavors span several critical therapeutic categories, including inflammatory conditions, oncology and hematology, bone health, cardiovascular diseases, nephrology, and neuroscience. Its extensive portfolio features a range of significant pharmaceutical products. Notable examples include Enbrel, prescribed for conditions like plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis; Neulasta, which helps cancer patients by reducing the risk of infection linked to a low white blood cell count; Prolia, utilized in postmenopausal women to combat osteoporosis; and Xgeva, designed to prevent skeletal-related complications. Otezla offers relief for adult patients suffering from plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behçet's disease. Aranesp addresses anemia and low red blood cell counts, while KYPROLIS is employed to treat patients with relapsed or refractory multiple myeloma.
AMGN (Amgen Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - General, with a market capitalization of approximately $193.39B, a trailing P/E of 24.81, a beta of 0.42 versus the broader market, a 52-week range of 269.77-391.29, average daily share volume of 2.8M, a public-listing history dating back to 1983, approximately 28K full-time employees. These structural characteristics shape how AMGN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.42 indicates AMGN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. AMGN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a bear put spread on AMGN?
A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width.
Current AMGN snapshot
As of June 30, 2026, spot at $362.39, ATM IV 27.41%, IV rank 48.51%, expected move 7.86%. The bear put spread on AMGN below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 31-day expiry.
Why this bear put spread structure on AMGN specifically: AMGN IV at 27.41% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 7.86% (roughly $28.48 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AMGN expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMGN should anchor to the underlying notional of $362.39 per share and to the trader's directional view on AMGN stock.
AMGN bear put spread setup
The AMGN bear put spread below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AMGN near $362.39, the first option leg uses a $360.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMGN chain at a 31-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 AMGN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $360.00 | $9.90 |
| Sell 1 | Put | $345.00 | $5.13 |
AMGN bear put spread risk and reward
- Net Premium / Debit
- -$477.50
- Max Profit (per contract)
- $1,022.50
- Max Loss (per contract)
- -$477.50
- Breakeven(s)
- $355.23
- Risk / Reward Ratio
- 2.141
Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit.
AMGN bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on AMGN. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$1,022.50 |
| $80.14 | -77.9% | +$1,022.50 |
| $160.26 | -55.8% | +$1,022.50 |
| $240.39 | -33.7% | +$1,022.50 |
| $320.51 | -11.6% | +$1,022.50 |
| $400.64 | +10.6% | -$477.50 |
| $480.76 | +32.7% | -$477.50 |
| $560.89 | +54.8% | -$477.50 |
| $641.01 | +76.9% | -$477.50 |
| $721.14 | +99.0% | -$477.50 |
When traders use bear put spread on AMGN
Bear put spreads on AMGN reduce the cost of a bearish AMGN stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
AMGN thesis for this bear put spread
The market-implied 1-standard-deviation range for AMGN extends from approximately $333.91 on the downside to $390.87 on the upside. A AMGN bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on AMGN, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current AMGN IV rank near 48.51% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on AMGN should anchor more to the directional view and the expected-move geometry. As a Healthcare name, AMGN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMGN-specific events.
AMGN bear put spread positions are structurally moderately bearish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. AMGN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMGN alongside the broader basket even when AMGN-specific fundamentals are unchanged. Long-premium structures like a bear put spread on AMGN are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current AMGN chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on AMGN?
- A bear put spread on AMGN is the bear put spread strategy applied to AMGN (stock). The strategy is structurally moderately bearish: A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width. With AMGN stock trading near $362.39, the strikes shown on this page are snapped to the nearest listed AMGN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AMGN bear put spread max profit and max loss calculated?
- Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit. For the AMGN bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 27.41%), the computed maximum profit is $1,022.50 per contract and the computed maximum loss is -$477.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AMGN bear put spread?
- The breakeven for the AMGN bear put spread priced on this page is roughly $355.23 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current AMGN market-implied 1-standard-deviation expected move is approximately 7.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bear put spread on AMGN?
- Bear put spreads on AMGN reduce the cost of a bearish AMGN stock position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
- How does current AMGN implied volatility affect this bear put spread?
- AMGN ATM IV is at 27.41% with IV rank near 48.51%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.