Amgen could be the biggest winner of the Dow shake-up, says the options market

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Of the three newest names joining the Dow, the options market is betting Amgen might be the biggest winner.

." "The most active contracts were the 250-calls that expire at the end of this week, Aug. 28. One buyer paid $2 for 700 contracts on a total of about 3,000 that traded."

Those contracts break even at a stock price of $252, about 1.5% higher from where Amgen closed Tuesday's session. That would be a sizable move into the end of the week, but if Amgen did break above that level, executing these contracts would allow the buyer to own — and profit on — any further upside that could come after the stocks officially join the Dow on Monday.

 

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