Dykstra: Watch Amgen

In Monday's column I suggested placing an order in Amgen(AMGN Quote) for 10 January 2008 45s (WAMAI) with a $12.50 limit order.

That order was not filled in Monday trading, but Amgen shares opened sharply lower today, at $52.36, after more bad news on its anemia franchise. My good-till-cancel order got filled at $10.40 this morning. I then set my sell order at $11.40.

This morning's volatile trading has these options nearing that $11.40 level, so I wanted to alert readers that today's selloff could create a win for this trade.

If you entered the GTC order and were filled on it this morning, be sure to enter your sell order as the current market for the January 2008 45s is $11 bid and $11.20 ask, just shy of hitting the $1,000 profit target. This underscores the importance of not chasing stocks, but waiting for them to come to the level.