AMGN Butterfly Strategy
AMGN (Amgen Inc.), in the Healthcare sector, (Drug Manufacturers - General industry), listed on NASDAQ.
Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. It focuses on inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology, and neuroscience areas. The company's products include Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis; Neulasta that reduces the chance of infection due a low white blood cell count in patients cancer; Prolia to treat postmenopausal women with osteoporosis; Xgeva for skeletal-related events prevention; Otezla for the treatment of adult patients with plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behçet's disease; Aranesp to treat a lower-than-normal number of red blood cells and anemia; KYPROLIS to treat patients with relapsed or refractory multiple myeloma; and Repatha, which reduces the risks of myocardial infarction, stroke, and coronary revascularization. It also markets Nplate, Vectibix, MVASI, Parsabiv, EPOGEN, KANJINTI, BLINCYTO, Aimovig, EVENITY, AMGEVITATM, Sensipar/Mimpara, NEUPOGEN, IMLYGIC, Corlanor, and AVSOLA. Amgen Inc. serves healthcare providers, including physicians or their clinics, dialysis centers, hospitals, and pharmacies. It distributes its products through pharmaceutical wholesale distributors, as well as direct-to-consumer channels.
AMGN (Amgen Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - General, with a market capitalization of approximately $181.58B, a trailing P/E of 23.29, a beta of 0.44 versus the broader market, a 52-week range of 264.15-391.29, average daily share volume of 2.6M, 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 0.44 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 butterfly on AMGN?
A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.
Current AMGN snapshot
As of May 15, 2026, spot at $327.19, ATM IV 23.85%, IV rank 22.47%, expected move 6.84%. The butterfly 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 28-day expiry.
Why this butterfly structure on AMGN specifically: AMGN IV at 23.85% is on the cheap side of its 1-year range, which favors premium-buying structures like a AMGN butterfly, with a market-implied 1-standard-deviation move of approximately 6.84% (roughly $22.37 on the underlying). The 28-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 $327.19 per share and to the trader's directional view on AMGN stock.
AMGN butterfly setup
The AMGN butterfly 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 $327.19, the first option leg uses a $310.00 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 28-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 | Call | $310.00 | $20.05 |
| Sell 2 | Call | $325.00 | $10.13 |
| Buy 1 | Call | $345.00 | $2.84 |
AMGN butterfly risk and reward
- Net Premium / Debit
- -$264.00
- Max Profit (per contract)
- $1,180.91
- Max Loss (per contract)
- -$764.00
- Breakeven(s)
- $312.64, $337.36
- Risk / Reward Ratio
- 1.546
Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.
AMGN butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly 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% | -$264.00 |
| $72.35 | -77.9% | -$264.00 |
| $144.69 | -55.8% | -$264.00 |
| $217.04 | -33.7% | -$264.00 |
| $289.38 | -11.6% | -$264.00 |
| $361.72 | +10.6% | -$764.00 |
| $434.06 | +32.7% | -$764.00 |
| $506.41 | +54.8% | -$764.00 |
| $578.75 | +76.9% | -$764.00 |
| $651.09 | +99.0% | -$764.00 |
When traders use butterfly on AMGN
Butterflies on AMGN are pinning bets - traders use them when they expect AMGN to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
AMGN thesis for this butterfly
The market-implied 1-standard-deviation range for AMGN extends from approximately $304.82 on the downside to $349.56 on the upside. A AMGN long call butterfly is a pinning play: it pays maximum at the middle strike if AMGN settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current AMGN IV rank near 22.47% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on AMGN at 23.85%. 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 butterfly positions are structurally neutral / pin (limited-risk, limited-reward); 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. Always rebuild the position from current AMGN chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on AMGN?
- A butterfly on AMGN is the butterfly strategy applied to AMGN (stock). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. With AMGN stock trading near $327.19, 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 butterfly max profit and max loss calculated?
- Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the AMGN butterfly priced from the end-of-day chain at a 30-day expiry (ATM IV 23.85%), the computed maximum profit is $1,180.91 per contract and the computed maximum loss is -$764.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AMGN butterfly?
- The breakeven for the AMGN butterfly priced on this page is roughly $312.64 and $337.36 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 6.84%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on AMGN?
- Butterflies on AMGN are pinning bets - traders use them when they expect AMGN to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
- How does current AMGN implied volatility affect this butterfly?
- AMGN ATM IV is at 23.85% with IV rank near 22.47%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.