Amgen Inc. (AMGN): A Bull Case Theory

We came across a bullish thesis on Amgen Inc. on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on AMGN. Amgen Inc.'s share was trading at $382.87 as of February 24th. AMGN’s trailing and forward P/E were 24.32 and 13.74, respectively according to Yahoo Finance.

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Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. AMGN is attracting bullish positioning after a trader sold 1,000 June 18, 2026 $340 put contracts for $9.00 each, collecting $900,000 in upfront premium. With the stock trading around $376 as of February 23, 2026, the strike sits nearly 10% below the current price, providing a meaningful cushion before assignment risk emerges.

The trade reflects confidence that recent fundamentals have created a durable floor under the shares. Amgen delivered a Q4 beat and raise, guiding 2026 revenue to approximately $38.4 billion, signaling accelerating momentum. Growth in Repatha, up 44%, combined with anticipated Phase 3 data for its obesity candidate MariTide, reinforces the narrative that Amgen is transitioning from a defensive dividend name to a growth-oriented biotech leader.

The $9.00 premium lowers the effective break-even to $331. At management’s midpoint 2026 EPS guidance of $22.30, Amgen currently trades near 17x forward earnings; assignment at $331 would imply an entry multiple closer to 14.8x. For a large-cap biotech with diversified revenue streams, strong cash generation, and an expanding pipeline, that valuation appears compelling.

Time decay further strengthens the setup. With several months until expiration, theta works in the seller’s favor as long as shares remain stable or trend higher toward analyst targets near $440. Supported by roughly $9.1 billion in cash and a 2.6% dividend yield, Amgen offers both balance sheet strength and upside optionality tied to the obesity market. The put sale expresses a bullish thesis: monetize volatility today while positioning for a potential re-rating tomorrow.

Previously, we covered a 

 on Amgen Inc. (AMGN) by Magnus Ofstad in May 2025, which highlighted strong earnings growth, MariTide pipeline potential, and valuation upside. AMGN's stock price has appreciated by approximately 36.41% since our coverage. OppCost shares a similar view but emphasizes on options market positioning and improving fundamentals supporting a durable valuation floor.

Amgen Inc. is not on our list of the 

. As per our database, 62 hedge fund portfolios held AMGN at the end of the third quarter which was 62 in the previous quarter. While we acknowledge the risk and potential of AMGN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMGN and that has 10,000% upside potential, check out our report about this