Posts Tagged ‘DNDN’

Mixed Options Trading Ensues On Dendreon Disaster

Today’s tickers: DNDN, GOLD & RYL

DNDN - Dendreon Corp. – Investors stormed Dendreon Corp. options this morning with shares hemorrhaging uncontrollably during the first 90 minutes of trade. The stock dropped as much as 68.0% to land an intraday low of $11.34. Shares in the maker of prostate-cancer drug Provenge currently trade at $11.97, a 66.6% discount to Wednesday’s closing value of $35.84, as of 11:40 am ET. Traders purged their portfolios of Dendreon after the Seattle, WA-based company withdrew its 2011 sales estimate and said revenues for Provenge failed to meet forecasts. The nosedive in the price of the underlying drove options implied volatility on the stock up 128.2% to 122.01% during the first half of the session. Strategists populating DNDN options are taking varied stances on the company, and have exchange more than 63,000 contracts so far today. It looks like some players are raking in hefty profits on previously established bearish bets, while others are snapping up calls in the hopes that selling is overdone. Traders eyeing a near-term rebound in the price of the underlying purchased more than 600 calls at the August $17.5 strike for an average premium of $0.25 apiece. Longer-term optimists initiated the Jan. 2012 $15/$22.5 bull call spread roughly 1,000-times at an average net cost of $1.21 each. Call-spreaders may profit if Dendreon’s shares surge 56.3% over the current price of $11.97 to surpass the average breakeven point at $18.71 by January expiration. Plain vanilla call-buying at the November $18 and $19 strikes indicates like-minded strategists are hoping a comeback story is in the works for the stock. Meanwhile, open interest in the August $36 strike put suggests traders purchased around 1,350 contracts at that strike for an average premium of $1.62 each this week. Buyers of these puts now hold options trading at a premium of $23.75 a-pop. Finally, outright bears expecting shares to slide lower ahead of August expiration paid an average premium of $0.27 per contract for around 600 of the…
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Puts in Demand at Dendreon

Today’s tickers: DNDN, EW, IO & CCI

DNDN - Dendreon Corp. – The biotechnology company today announced the U.S. FDA approved its cancer immunotherapy manufacturing facility in Los Angeles. The approval allows the company to increase the availability of its prostate cancer treatment, Provenge. Shares in the biotechnology company are off their lows of the session, but are still down 0.90% on the day to stand at $40.14 as of 12:20 pm ET. Dendreon options are a-buzz with bearish activity today despite the approval of the Los Angeles facility. Calls and puts are active, particularly in the front month. Trading patterns in put options paint a pessimistic picture of Dendreon’s share price performance in the near-term, while trading in calls suggests investors hold mixed opinions. Volume in DNDN options in heaviest at the July $38 strike where more than 4,600 puts changed hands against open interest of 1,465 contracts. It looks like most of the put options were purchased for an average premium of $1.07 apiece. Put buyers at this strike profit if shares in Dendreon Corp. drop 8.0% to breach the average breakeven point on the downside at $36.93 at expiration next month. Bears purchased puts at the July $40 and $39 strikes, as well. Lighter volume in deep out-of-the-money puts expiring in July also appears to be largely driven by traders initiating bearish stances on the stock. Dendreon is scheduled to report second-quarter earnings on August 2 after the bell. Options implied volatility on the stock rose 5.3% to 48.09% in early afternoon trade.

EW - Edwards Lifesciences Corp. – Options activity on the world’s biggest maker of heart valves suggests shares in Edwards Lifesciences Corp. may be on track to appreciate in the next couple of months. The price of the underlying stock currently trades 0.80% higher on…
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Smart Portfolio Management I – The $10,000 Virtual Portfolio

Options Sage submits:

“Never risk what you do have and do need on what you don’t have and don’t need”

Smart virtual portfolio management is a world apart from conventional virtual portfolio management.  While conventional virtual portfolio management offers generic guidelines to diversify capital, smart virtual portfolio management is tailored to your personal circumstances.  With that in mind this article has been divided into a three-part series.  The first discusses a $10K virtual portfolio while the second will offer suggestions for a $100K virtual portfolio and the final article will discuss $1M virtual portfolios.

Although this first article in the series addresses prudent strategies for a $10K virtual portfolio, many conservative investors are likely to find  the strategies addressed throughout suitable for their own virtual portfolios – though the % allocations will differ as we will see in the future articles.  No matter what your risk tolerance, a virtual portfolio comprising some relatively conservative trades is always prudent!

$10,000 Virtual Portfolio

Phil once commented that, when trading a $10,000 virtual portfolio, “every $100 counts”! 

Capital should be allocated judiciously in a $10K virtual portfolio.  NEVER allocate a majority of your capital to any single trade.  Dedicating 20% of your virtual portfolio to relatively conservative trades (shown below) is appropriate but exceeding 30% is far too risky when dealing with limited capital.  With a $10K virtual portfolio, it becomes increasingly imperative to be right first time.  Financial constraints limit your ability to scale into trades at different threshold levels and that makes timing critical unless….

Unless you figure out how to trade without requiring perfect timing of the market!  Those of you trading along with Phil’s earnings spreads have already seen some of the ways we take advantage of stock movement, whether they go up, stay flat or even drop to some degree…

Strategy A:  The Covered Call – With a Twist – Making 15% in Just 7 Weeks

Instead of placing the short call out-of-the-money in the conventional format, the short call is actually placed in-the-money.  

C closed on Friday at $4.37.  Since the C has had come down a lot ,…
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GDWheee Friday – Could be a Wild Ride!

Attention ladies and gentlemen:

The stock market will soon be leaving the station, please secure all personal items, pull down the safety bar (our Disaster Hedges) and keep all body parts inside ride at all times.  Well you know you can follow all of the safety instructions and STILL get smacked in the face with a black swan (like our friend Fabio, pictured here) which is why we elected to get back to cash ahead of this report.  The markets were just too insane this week and who the heck knows if Europe will still be a Union on Monday or what the GDP number is going to be (but I do think it's a miss). 

Since our biggest weekend fear is financial panic in Europe, our cash US dollars will become more valuable in a crisis and if the market drops, all the better as we can ride back in and do some bargain hunting.  If the market takes off on good GDP and Greece is "fixed" and Spain is "fixed" and Portugal and Ireland are not really a problem (especially for MS and JPM) and the CRIMINAL charges against Goldman look beatable and and the Financial Reform Bill doesn't disrupt the market with a disorderly breakup of the big banks and the Bank of International Settlements Report continues to be ignored and the run on the Greek banks doesn't spread to other STUPID counties – well, then we can BUYBUYBUY because, if all this doesn't matter, then it's very likely that the entire planet Earth could explode but Wall Street will keep ticking higher.

Yep, I can't wait to ride this baby mindlessly higher!  After all, what can go wrong?  BIDU is ONLY $710 a share, BLK is $190, CMP is $76, GOLD is $84, BUCY is $65, FAST is $56, MMM is $90, FOSL $40, F $13.50, DECK $149, SHOO $55, TPX $35, LZB $14, CTB $22, NOG $16, CEO $176, FTI $75, CLB $150, CIB $46, BBD $19, TD $75, BCA $45, BAP $87, ITUB $22, EDU $94, WYNN $93, FFIV $72, CY $14, CREE $77, UPS $70, UNP $78… 

These were stocks I was looking at last week, when I told members I thought it was easier to construct a Sell List than our usual…
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Best Buy Option Investors Condone Broker Upgrade in Bullish Action

Today’s tickers: BBY, DNDN, GLD, BAC, AET, BA & NBR

BBY – Best Buy Co., Inc. – Shares of the world’s largest electronics retailer rallied 2% to $41.25 during the trading session after receiving an upgrade to ‘buy’ from ‘neutral’ at Goldman Sachs Group where analysts increased BBY’s target share price to $47.00 from $44.00. Options traders employed a few different bullish tactics to position for continued upward movement in the price of the underlying stock through expiration in April. Plain-vanilla call buyers targeted the April $44 strike to purchase 5,100 calls for an average premium of $0.55 apiece. These investors stand ready to accrue profits if Best Buy’s share price increases 8% from the current value to exceed the effective breakeven point on the calls at $44.55 by expiration day. Another options player rolled a previously established long call position from the March contract to the April contract in order to extend bullish sentiment on the stock. The trader sold roughly 4,000 in-the-money calls at the March $41 strike for a premium of $0.33 apiece, and purchased about the same number of calls at the higher March $42 strike for an average premium of $1.18 each. In isolation, the net cost of the roll amounts to $0.85 per contract, thus positioning the investor to profit above the breakeven share price of $42.85. Options implied volatility is up approximately 5.5% as of 12:10 pm (ET) to stand at 33.68%.

DNDN – Dendreon Corp. – The biotechnology company received a repeat performance of bearish options activity observed during the previous trading session. Yesterday we reported a put butterfly spread in the April contract on Dendreon. Today the same spread doubled in size. Shares of the biotech firm slipped 1.15% during the current session to trade at $35.75. As was the case yesterday, the spread involved the purchase of 5,000 puts at the April $30 strike for an average premium of $0.94 each [wing 1] and the purchase of another 5,000 puts at the lower April $20 strike for $0.38 apiece [wing 2]. The body of the butterfly centered at the April $25 strike where the bearish investor shed 10,000 puts for a premium of $0.46 apiece. The net cost of the spread is $0.40 per contract, which is a full 10 pennies more expensive than the butterfly spread initiated yesterday. Maximum potential profits of $4.60 per contract are available to the…
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Citi-Bull Sheds Just Under a Quarter Million Put Options

Today’s tickers: C, ERTS, ATVI, DNDN, HIG, DD, RCL, SFD & AMR

C – Citigroup, Inc. – One investor established a mammoth bullish stance on Citigroup in the first 20 minutes of the current trading session. Citigroup’s shares at the time of the transaction were trading at approximately $4.05, but have since slipped lower and are down 0.50% to $4.03 as of 2:45 pm (ET). It looks like the Citi-bull sold 240,000 put options outright at the April $4.0 strike to take in a premium of $0.16 per contract. Premium received on the sale, which represents maximum potential profits, amounts to $3.840 million to the investor if Citigroup’s shares trade above $4.00 through expiration day. The short stance in put options implies the investor is willing to have 24 million shares of the underlying stock put to him at an effective price of $3.84 each should the puts land in-the-money at expiration.

ERTS – Electronic Arts, Inc. – An enormous bullish debit call spread purchased on video game software publishing company, Electronic Arts, Inc., indicates one big options investor is expecting shares of the underlying stock to rally sharply ahead of expiration in January 2011. Electronic Arts’ shares are up 2.40% this afternoon to $18.57. The options player purchased approximately 61,000 call options at the January 2011 $25 strike for an average premium of $0.60 apiece, and sold roughly the same number of contracts at the higher January 2011 $30 strike for $0.14 each. The net cost of the spread amounts to $0.46 per contract, thus yielding maximum potential profits of $4.54 apiece if shares surge through $30.00 by expiration day next year. ERTS shares must increase at least 37% from the current price in order for the investor to break even on the trade at $25.46. Maximum profit acquisition of $4.54 per contract, or total gains of $27.694 million, requires a 61.55% rally in shares to $30.00 by January expiration. The 122,000 call options utilized in the transaction represent a staggering 44.58% of total existing open interest on the stock of 273,639 contracts.

ATVI – Activision Blizzard, Inc. – The producer of online, console and hand-held games received a vote of confidence by one large options player anticipating bullish movement in the price of its shares through expiration in January 2011. Activision’s shares rallied 2.12% to $12.05 in the first half of the trading session. The optimistic investor established…
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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Struggling U.S. Economy Propped Up by Gain in Consumer Spending (Bloomberg)

The U.S. economy stumbled in the first half of 2016 as companies retrenched, leaving consumers to shoulder the burden of sustaining growth heading into the presidential election.

The stock market's ridiculously boring streak won't last (Business Insider)

The s...



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Phil's Favorites

Crisis Actors and a Reichstag Fire

 

Crisis Actors and a Reichstag Fire

Courtesy of John Mauldin

This week your Outside the Box is from my friend Ben Hunt, who writes his letter under the title Epsilon Theory. This edition is a little darker than usual, and certainly more of a think piece. A central argument that Ben makes in Epsilon Theory is that it is Narrativethat is the driver of politics, economics, and social interaction generally. The Narrative is what we all (mostly) believe and act upon. Investors generally believe that quantitative easing is going to result in a rising stock market, so they act as if another round of QE and continued low or negative rates are good for the equity markets; and thus the game...



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Zero Hedge

MacVLaDiMiR THe CaT

Courtesy of ZeroHedge. View original post here.

MacVladimir The Cat: The Napoleon of Globalist Crime 

MacVladimir a Mystery Cat: he's called the Hidden Paw—
For he's the master criminal who defies globalists with a guffaw.
He's the bafflement of Scotland Yard, the Neocon's despair:
For when they reach the scene of crime—MacVladimir's not there!

MacVladimir, MacVladimir, there's no one like Ma...

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Chart School

S&P 500 Snapshot: Weak GDP? No Worries!

Courtesy of Doug Short's Advisor Perspectives.

The potential mover and shaker this morning was the surprisingly weak Advance Estimate of GDP for Q2, not to mention the downward revisions to the two previous quarters. But no worries for the market! The S&P 500 hits its -0.30% intraday low about 30 minutes into the trade and then bounced to its 0.32% intraday high during the lunch hour -- a record intraday high for that matter. A bit of zigzagging in the afternoon cut the closing gain in half to 0.16%, just a tad shy of a record close.

The bond market took a somewhat different view. The yield on the 10-year dropped six basis points to close at 1.46%. That's nine BPs off its all-time closing low and 11 BPs below its close on July 22, when the S&P 500 set its latest record close.

He...



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ValueWalk

NetSuite Inc Stock Soars On Oracle Corporation Bid

By Jacob Wolinsky. Originally published at ValueWalk.

NetSuite Inc (NYSE:N) is soaring this morning as Oracle Corporation (NASDAQ:ORCL) has made a bid to buy the company for $9.3 billion. This deal has been rumored for some time but obviously few expected such a large premium or did not think the bid was certaintly coming as the stock is up about 18 percent at the time of this writing which is a lot for a tech giant. Here is what the sell side is saying.

NetSuite – analysts react

Nomura

Should the transaction take place, Oracle would pay about 9x NTM EV / revenue (based on consensus estimates for NetSuite), above the average multiple paid in our precedent SaaS Software acquisitions analysis of 6.8x . Additionally, Oracl...



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Mapping The Market

Illusion of Choice

From Jean-Luc:

Looks like we are down to about 10 companies for our consumer goods:

http://www.visualcapitalist.com/illusion-of-choice-consumer-brands/

Just like banks, airlines and cable companies! 

The Illusion of Choice in Consumer Brands

Explore the full-size version of the above graphic in all its glory.

If today’s infographic looks familiar, that’s because it originates from a well-circulated report that Oxfam International puts together to show consolidation i...



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Digital Currencies

Judge Rules Bitcoin Isn't Money Because It "Can't be Hidden Under A Mattress"

Courtesy of ZeroHedge. View original post here.

By Everett Numbers via TheAntiMedia.org

In a landmark decision, a Florida judge dismissed charges of money laundering against a Bitcoin seller on Monday following expert testimony showing state law did not apply to the cryptocurrency.

Michell Espinoza was charged with three felony charges related to money laundering i...



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Kimble Charting Solutions

Junk Bonds at important inflection point, should impact stocks!

Courtesy of Chris Kimble.

Junk bonds have been quality at sending Risk On and Risk Off message to the broad stock market. Below looks at Junk Bond ETF JNK over the past decade.

JNK finds itself at an important price point below and what it does in the upcoming couple of weeks could become a big influence on the Risk On/Risk Off trade.

CLICK ON CHART TO ENLARGE

...

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OpTrader

Swing trading portfolio - week of July 25th, 2016

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Biotech

This Is Why Biotech Stocks May Explode Again

Reminder: Pharmboy and Ilene are available to chat with Members.

Here's an interesting article from Investor's Business Daily arguing that biotech stocks are beginning to recover from their recent declines, notwithstanding current weakness.

This Is Why Biotech Stocks May Explode Again

By 

Excerpt:

After a three-year bull run that more than quadrupled its value by its peak last July, IBD’s Medical-Biomed/Biotech Industry Group plunged 50% by early February, hurt by backlashes against high drug prices and mergers that seek to lower corporate taxes.

...



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We know you love coming here for our Stocks & Options education, strategy and trade ideas, and for Phil's daily commentary which you can't live without, but there's more!

PhilStockWorld.com features the most important and most interesting news items from around the web, all day, every day!

News: If you missed it, you can probably find it in our Market News section. We sift through piles of news so you don't have to.   

If you are looking for non-mainstream, provocatively-narrated news and opinion pieces which promise to make you think -- we feature Zero Hedge, ...



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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!




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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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