Amgen (AMGN) Dips 0.3% Amid Expansion Hype and Biotech Sector Volatility – What’s Fueling the Move?

Summary
• Amgen announces $650M U.S. manufacturing expansion, creating 750 jobs
• Stock trades down 0.3% at $294.63, below intraday high of $297.63
• Biotech sector mixed as Bristol-Myers Squibb (BMY) declines 0.04%

Amgen’s intraday slide defies its recent $650 million U.S. expansion announcement, sparking questions about market skepticism or sector-wide headwinds. With the stock trading near its 52-week low of $253.30 and a dynamic PE of 25.08, investors are dissecting whether the bearish move reflects broader biotech sector jitters or specific concerns about Amgen’s capital allocation. The stock’s 0.3% drop—despite bullish technicals like a 66.84 RSI—highlights a tug-of-war between corporate optimism and macroeconomic caution.

Expansion Optimism vs. Sector-Wide Biotech Jitters
Amgen’s $650 million U.S. manufacturing expansion, announced on Sept. 26, should have bolstered investor confidence. However, the stock’s 0.3% decline suggests market participants are weighing the long-term benefits of job creation and biologics production against near-term risks. The biotech sector, led by peers like Bristol-Myers Squibb (BMY), is under pressure amid broader market volatility and regulatory scrutiny over drug pricing. While Amgen’s expansion aligns with its $40 billion post-2017 R&D and manufacturing investments, the stock’s pullback indicates investors are prioritizing caution over optimism, particularly as the company faces biosimilar competition for key products like Enbrel.

Biotech Sector Mixed as AMGN Trails BMY’s Slight Decline
The biotech sector remains fragmented, with Bristol-Myers Squibb (BMY) down 0.04% despite Amgen’s expansion news. While Amgen’s $650 million investment underscores U.S. manufacturing resilience, sector-wide concerns about pricing pressures and clinical trial setbacks—such as mixed results for bemarituzumab in gastric cancer—have dampened enthusiasm. The sector’s mixed performance reflects a tug-of-war between innovation optimism and macroeconomic headwinds, with Amgen’s 0.3% decline mirroring broader caution.

Options Playbook: Capitalizing on AMGN’s Volatility with Gamma-Driven Contracts
• 200-day MA: 288.42 (below) • RSI: 66.84 (neutral) • MACD: 2.45 (bullish) • Bollinger Bands: 264.08–301.61 (wide range)

Amgen’s technicals suggest a short-term consolidation phase, with the 200-day MA acting as a key support. The stock’s 66.84 RSI indicates neither overbought nor oversold conditions, while the 2.45 MACD histogram hints at lingering bullish momentum. For traders, the $294.35–295.73 support/resistance zone (200D range) is critical. A break below $294.35 could trigger a test of the 200-day MA at $288.42, while a rebound above $297.63 (intraday high) may reignite bullish sentiment.

Top Options Contracts:
• AMGN20251017P295 (Put): Strike $295, Expiry 2025-10-17, IV 22.52%, Leverage 64.02%, Delta -0.508, Theta -0.0476, Gamma 0.0363, Turnover 16,079
- IV: Moderate volatility for directional bets
- Leverage: High reward potential for bearish moves
- Delta: Sensitive to price declines
- Gamma: Strong sensitivity to price swings
- Turnover: High liquidity for entry/exit
- Why it stands out: This put contract offers a 36.99% downside payoff potential if Amgen drops 5% to $279.89, making it ideal for short-term bearish plays.

• AMGN20251017C297.5 (Call): Strike $297.5, Expiry 2025-10-17, IV 27.09%, Leverage 74.55%, Delta 0.4208, Theta -0.3675, Gamma 0.0296, Turnover 15,732
- IV: Balanced volatility for bullish exposure
- Leverage: High reward for upward moves
- Delta: Moderate sensitivity to price gains
- Gamma: Responsive to price acceleration
- Turnover: Strong liquidity for execution
- Why it stands out: This call offers a 35.27% upside payoff if Amgen rallies 5% to $309.36, positioning it as a high-gamma play for breakout scenarios.

Action Insight: Aggressive bulls may consider AMGN20251017C297.5 into a bounce above $297.63, while bears should eye AMGN20251017P295 for a breakdown below $294.35.

Backtest Amgen Stock Performance
Below is an interactive report that summarises the -0.3 % intraday-plunge rebound strategy on Amgen (AMGN) from 1 Jan 2022 to 8 Oct 2025. Key highlights: • Total strategy return: 26.67 % (annualised ≈ 8.49 %) • Average trade return: 0.45 % with a win / loss ratio of 1.37 • Largest drawdown: 24.18 % – emphasising the need for risk limits • Trades were force-closed after 10 trading days; no stop-loss / take-profit rules were added in this pilot test.Feel free to drill into the module for all entry dates, P/L curves and trade-by-trade statistics.You can interact with the module to inspect the equity curve, individual trades and full statistical breakdown.

AMGN at Crossroads: Watch 294.35 Support and BMY’s Sector Signal
Amgen’s 0.3% decline reflects a pivotal moment where corporate optimism clashes with sector-wide caution. While the $650 million expansion signals long-term resilience, the stock’s proximity to its 52-week low and the 200-day MA at $288.42 demands vigilance. Investors should monitor the $294.35 support level and the biotech sector’s mixed performance, particularly Bristol-Myers Squibb’s 0.04% decline. A breakdown below $294.35 could trigger a deeper correction, while a rebound above $297.63 may reignite bullish momentum. For now, the AMGN20251017P295 and AMGN20251017C297.5 options offer high-gamma plays to capitalize on either scenario.