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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Chart School

RecessionAlert Weekly Leading Index Update

Courtesy of Doug Short's Advisor Perspectives.

The latest index reading comes in at 16.4, up from the previous week's revised 14.5.

RecessionAlert has launched an alternative to ECRI's Weekly Leading Index Growth indicator (WLIg). The Weekly Leading Economic Index (WLEI) uses fifty different time series from these categories: Corporate Bond Composite, Treasury Bond Composite, Stock Market Composite, Labor Market Composite, Credit Market Composite. RecessionAlert emphasizes that WLEI is a growth index and its data is no more than a week old, as is ECRI's WLIg.

Here is an excerpt from the description...



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Zero Hedge

"The Great Unraveling" - Hilsenrath Slams The Fed: "Years Of Fed Missteps" Foster US Populism, Disillusion

Courtesy of ZeroHedge. View original post here.

For years we have argued that the main reasons for rising social anger, populist sentiment, and general disillusion with the US economy boils down to one thing: the Federal Reserve, which as we have argued since 2009, has approached the crisis aftermath in a wrong way, generated unprecedented wealth inequality through its monetary policy favoring a tiny fraction of the population - those invested in risk assets - and instead of reflating another debt bubble, should have allowed the system to undergo a debt purge and start afresh.

For this we have be...



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Phil's Favorites

Mylan CEO: "The US Healthcare System Bubble Is Going To Burst; This Is No Different Than The Subprime Crisis"

Courtesy of ZeroHedge. View original post here.

As noted earlier, following a feverish push by Congress and Hillary Clinton to scapegoat Mylan, and its CEO, Heather Bresch, as "greedy" examples of corporatism (even though it is not Mylan's fault it is a de facto monopoly and thus has unlimited pricing ability), the EpiPen maker on Thursday announced plans to boost access to its EpiPen Auto-Injector by expanding already existing programs for patients who are facing higher out-of-pocket costs. The company is reducing the cost of EpiPens through the use of a savings card which will cover ...



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ValueWalk

Chile - How To Stay Optimistic Even As Terrorists "Threaten Our Existence"

By Sovereign Man. Originally published at ValueWalk.

How To Stay Optimistic Even As Terrorists “Threaten Our Existence” by Simon Black

Earlier this week the German government leaked a frightening 69-page memo entitled “Concept for Civil Defense.”

Citing multiple terrorist attacks, cybercrime, and a host of other threats, the report states that Germans should prepare for an event that could “threaten our existence.”

Yikes.

The report proposes a number of mandatory countermeasures, including that Germans should stockpile food and water.

There’s also peculiar language about “civil support for the armed forces” suggesting a possible return to mandatory military service, in addition to potential plans for emergency nationalization of food production and distribution.

...

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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

PBOC Money-Market Tactic Has Traders Trying to Decode Signal (Bloomberg)

The People’s Bank of China sold 50 billion yuan ($7.5 billion) of 14-day reverse-repurchase agreements on Wednesday, its first offering of anything with a tenor other than seven days since February. 

Anything Goes With Ethical Funds Holding Exxon to Big Tobacco (Bloomberg)

Thinking of putting your money into a fund that describes itself as ethical? You’d better read the fine print if backing Exxon Mobil Corp. and British American Tobacco Plc isn’t your idea...



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Kimble Charting Solutions

Gold Mining stocks could be breaking important support

Courtesy of Chris Kimble.

Gold mining stocks have had a great year 2016. From the lows, GDX is up over 100%, remaining inside of a steep rising channel. The rising channel GDX has been in during this historic sharp rally, could be breaking.

CLICK ON CHART TO ENLARGE

GDX has remained inside of the blue rising channel for the majority of 2016. This channel has contained a 100% rally in the past few months.

The rally took GDX up to an unfilled GAP, just below its 38% Fibonacci retrac...



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Biotech

Epizyme - A Waiting Game

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

Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer.  One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."

Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.  

Genetic components are the DNA sequences that are 'inherited.'  Some of these genes are stronger than others in their expression (e.g., eye color).  Yet, some genes turn on or off due to external factors (environmental), and it is und...



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OpTrader

Swing trading portfolio - week of August 22nd, 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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Digital Currencies

Man Who Introduced Millions to Bitcoin Says Blockchain Is a Bust

 

Man Who Introduced Millions to Bitcoin Says Blockchain Is a Bust 

By  at Bloomberg

Excerpt:

Stefan Thomas, who introduced millions of people to bitcoin, has had a change of heart.

Blockchain, the ledger software that makes the digital currency possible...



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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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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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Promotions

PSW is more than just stock talk!

 

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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About Phil:

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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