Amgen Stock Traders Go Bearish, Buying Up Put Options in Large Volumes

Stock traders have been buying up large volumes of put options on Amgen (NASDAQ:AMGN), a biotechnology company that discovers, develops, manufactures and delivers medicines for serious illnesses. In a single day, Thursday, stock traders bought 38,050 put options on the stock, which is an increase of 309% compared to the average daily volume of 9,295 put options.

The unusual activity in Amgen's options market comes as the company's shares have been declining. On Thursday, AMGN traded down $8.93, reaching a price of $382.34 per share. This represents a 2.3% decline for the day and has some investors concerned about the company's prospects.

The buying activity in put options suggests that some traders are expecting Amgen's stock to continue falling in value. A put option gives the buyer the right, but not the obligation, to sell a certain number of shares at a specified price before a given date. The large increase in put option volume is a sign that investors may be hedging their bets or taking a bearish stance on Amgen's stock.

Amgen has had some positive news recently, including an announcement from the company and AstraZeneca that the Imdelltra-Imfinzi combination improved survival outcomes in a late-stage study of patients with extensive-stage small-cell lung cancer. However, other factors, such as declining sales from biosimilar competition and concerns about the commercial outlook for cholesterol-lowering therapies, may be contributing to the bearish sentiment in Amgen's stock.