AMGN Iron Condor 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 iron condor on AMGN?
An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes.
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 iron condor 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 iron condor structure on AMGN specifically: AMGN IV at 27.41% is mid-range versus its 1-year history, so the credit collected on a AMGN iron condor sits in line with its long-run distribution, 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 iron condor setup
The AMGN iron condor 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 $380.00 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) |
|---|---|---|---|
| Sell 1 | Call | $380.00 | $5.30 |
| Buy 1 | Call | $400.00 | $2.88 |
| Sell 1 | Put | $345.00 | $5.13 |
| Buy 1 | Put | $325.00 | $2.55 |
AMGN iron condor risk and reward
- Net Premium / Debit
- +$499.50
- Max Profit (per contract)
- $499.50
- Max Loss (per contract)
- -$1,500.50
- Breakeven(s)
- $340.01, $385.00
- Risk / Reward Ratio
- 0.333
Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit.
AMGN iron condor payoff curve
Modeled P&L at expiration across a range of underlying prices for the iron condor 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% | -$1,500.50 |
| $80.14 | -77.9% | -$1,500.50 |
| $160.26 | -55.8% | -$1,500.50 |
| $240.39 | -33.7% | -$1,500.50 |
| $320.51 | -11.6% | -$1,500.50 |
| $400.64 | +10.6% | -$1,500.50 |
| $480.76 | +32.7% | -$1,500.50 |
| $560.89 | +54.8% | -$1,500.50 |
| $641.01 | +76.9% | -$1,500.50 |
| $721.14 | +99.0% | -$1,500.50 |
When traders use iron condor on AMGN
Iron condors on AMGN are a delta-neutral premium-collection structure that profits if AMGN stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
AMGN thesis for this iron condor
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 iron condor is a delta-neutral premium-collection structure that pays off when AMGN stays inside the inner short strikes through expiration; the wing width should reflect the trader's tolerance for the maximum loss scenario where the underlying breaches an outer strike. Current AMGN IV rank near 48.51% is mid-range against its 1-year distribution, so the IV signal is neutral; the iron condor 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 iron condor positions are structurally neutral / range-bound; 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. Short-premium structures like a iron condor on AMGN carry tail risk when realized volatility exceeds the implied move; review historical AMGN earnings reactions and macro stress periods before sizing. Always rebuild the position from current AMGN chain quotes before placing a trade.
Frequently asked questions
- What is a iron condor on AMGN?
- A iron condor on AMGN is the iron condor strategy applied to AMGN (stock). The strategy is structurally neutral / range-bound: An iron condor sells a call spread and a put spread at strikes outside spot, collecting net premium that is kept if the underlying stays inside the inner short strikes. 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 iron condor max profit and max loss calculated?
- Max profit equals the net credit times 100 inside the inner strikes; max loss equals wing width minus credit times 100. Two breakevens at inner strikes plus and minus the credit. For the AMGN iron condor priced from the end-of-day chain at a 30-day expiry (ATM IV 27.41%), the computed maximum profit is $499.50 per contract and the computed maximum loss is -$1,500.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AMGN iron condor?
- The breakeven for the AMGN iron condor priced on this page is roughly $340.01 and $385.00 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 iron condor on AMGN?
- Iron condors on AMGN are a delta-neutral premium-collection structure that profits if AMGN stock stays inside the inner short strikes; short strikes typically sit near 1 standard deviation from spot.
- How does current AMGN implied volatility affect this iron condor?
- 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.