Amgen Soars 2.96% Intraday, Can AMGN Maintain Its Momentum Amid Biotech Sector Surge?

Summary
• Amgen (AMGN) surges 2.96% to $304.63, nearing its 52-week high of $340.89 with $14.32M turnover.
• Sector peers like Gilead Sciences (GILD) rally 2.3%, signaling biotech optimism from M&A and manufacturing news.
• Options volatility spikes, with 120+ contracts trading above 20% IV ahead of the 8/1 expiration cycle.
Amgen’s intraday surge reflects broader biotech sector momentum driven by Sanofi’s $1.6B vaccine acquisition and AstraZeneca’s $50B U.S. manufacturing push. The stock’s 2.96% gain—its strongest in months—has traders debating whether this is a fleeting rebound or a new trend. With options data showing aggressive call buying and sector leaders rising in lockstep, the question is: Can AMGN sustain its momentum amid regulatory headwinds and sector consolidation?

Biotech Sector Optimism and M&A Hype Fuel AMGN’s Rally
Amgen’s 2.96% intraday surge aligns with sector-wide optimism driven by Sanofi’s $1.6B acquisition of Vicebio and AstraZeneca’s $50B U.S. manufacturing expansion. While AMGN lacks direct news, the sector’s focus on M&A and production scaling has created a tailwind. Investors are interpreting these moves as signals of long-term industry resilience, particularly as mRNA and gene therapy pipelines gain regulatory traction. The stock’s 2.96% gain—its highest since June—reflects this optimism, despite lingering concerns over Sarepta’s FDA-related setbacks and Roche’s recent trial failures in the sector.

Biotech Sector Gains Steam as Gilead Leads with 2.3% Surge
Gilead Sciences (GILD), the sector’s top performer, rose 2.3% alongside AMGN’s 2.96% gain, signaling a coordinated sector rally. Both stocks benefited from manufacturing and M&A-driven optimism, with AstraZeneca’s $50B U.S. factory push and Sanofi’s acquisition dominating headlines. While AMGN’s move is more pronounced, GILD’s lower turnover ($143.2M vs. AMGN’s $14.32M) indicates AMGN’s rally is more speculative. The biotech sector’s collective momentum underscores investor confidence in regulatory and production infrastructure advancements, despite recent data misses by peers like Roche and Sarepta.

Leveraged Options and Technicals for Biotech Momentum Traders
• Technical Indicators: 200-day MA: $292.08 (below); RSI: 64.89 (neutral); MACD: 3.00 (bullish)
• Key Levels: Upper Bollinger Band at $308.70, 200D MA support at $279.52
For traders, the 8/1 expiration cycle offers high-liquidity options. Two top picks stand out:
• AMGN20250801C310 (Call, $310 strike, 2025-08-01): IV 19.36% (moderate), leverage ratio 161.80%, delta 0.296 (moderate sensitivity), gamma 0.0338 (strong price sensitivity). Payoff: $11.84 per contract if AMGN hits $310.
• AMGN20250801C302.5 (Call, $302.5 strike, 2025-08-01): IV 15.72% (low), leverage ratio 71.07%, delta 0.591 (strong sensitivity), gamma 0.0467 (high responsiveness). Payoff: $15.37 per contract if AMGN breaks $302.50.
Aggressive bulls may consider AMGN20250801C310 if AMGN breaks $310, while AMGN20250801C302.5 serves as a hedge for a consolidation phase. Watch the 52W high ($340.89) as a critical inflection point.

Backtest Amgen Stock Performance
The backtest of AMGN's performance following a 3% intraday increase shows poor results, with an overall strategy return of only 18.30% compared to a benchmark return of 88.04%. The strategy had a maximum drawdown of 0.00%, indicating it avoided significant losses, but the Sharpe ratio was low at 0.14, suggesting modest risk-adjusted returns.

Biotech Optimism and Strategic Entry Points: What to Watch Now
Amgen’s 2.96% intraday surge reflects a sector-wide shift toward manufacturing and M&A optimism, but sustainability hinges on clearing $308.70 (upper Bollinger Band) and maintaining RSI above 60. With Gilead (GILD) rising 2.3%, the biotech sector’s coordinated momentum suggests a broader theme. Traders should monitor AMGN’s 200D MA ($292.08) as a critical support level and consider the 8/1 call options highlighted for leveraged exposure. Action Insight: Buy AMGN20250801C302.5 for a $302.50 breakout or AMGN20250801C310 if $310 is breached. Watch GILD’s 2.3% lead as a sector barometer.