On Friday’s CNBC’s Options Action, the crew analyzed the performance of the biotech sector. Biotech has lagged the broader market over the last few months, but has started to turn around this week. Coupled with less regulatory headwinds and recent drawdowns, biotech looks attractive for a bullish breakout. Amgen is the highest performing stock in the S&P over the past 30 years, but has consolidated over the last 3 years in a rectangle. Expecting AMGN to break above the $160 resistance level, Michael Khouw suggested buying a Sept 160/175 Call Spread for a $4.65 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: CNBC Options Action