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…
continue reading


Tags: , ,




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…
continue reading


Tags: , , ,




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 ,…
continue reading


Tags: , , , , ,




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…
continue reading


Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,




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…
continue reading


Tags: , , , , , ,




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…
continue reading


Tags: , , , , , , , ,




 
 
 

Phil's Favorites

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

SEC May Regret the Day It Allowed Leveraged ETFs (Bloomberg)

That bit of truism is all you need to understand the rapid rise in leveraged exchange-traded funds, which were created in 2006 as a way for investors to double their exposure to stock indices.

Trump's Big Problems: Anemic Private Investment and Weak Productivity (Forbes)

Why was the Great Depression so deep, and why did it drag on for so long? According to impressive research by Robert Higgs of the Independent Institute, it was because President Roose...



more from Ilene

Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

SEC May Regret the Day It Allowed Leveraged ETFs (Bloomberg)

That bit of truism is all you need to understand the rapid rise in leveraged exchange-traded funds, which were created in 2006 as a way for investors to double their exposure to stock indices.

Trump's Big Problems: Anemic Private Investment and Weak Productivity (Forbes)

Why was the Great Depression so deep, and why did it drag on for so long? According to impressive research by Robert Higgs of the Independent Institute, it was because President Roose...



more from Paul

ValueWalk

Past Empires That Can Tell Us About The Future In Four Maps

By Mauldin Economics. Originally published at ValueWalk.

Studying history has little practical utility in averting past outcomes. We are doomed to repeat history whether we know it or not.

The value in knowing history is not that one might prevent its recurrence. Its value is that it allows you to identify those things that don’t change and that shape events… no matter the year on the calendar.

That’s why I want to show you four maps that highlight what parts of the world looked like in the past… and that point the way toward what may come in the future.

China 

The map below simplifies a great deal of China’s ancient and imperial history. It shows seven states that fought for control of the historic Chinese heartland during the Warring States period (475–221 BC).

...



more from ValueWalk

Zero Hedge

China's Largest Dairy Operator Suddenly Crashes 90% To Record Low, Muddy Waters Says "Worth Close To Zero"

Courtesy of ZeroHedge. View original post here.

In December 2016, Muddy Waters' Carson Block said China's largest dairy farm operator, Hong-Kong listed China Huishan Dairy Holdings Co., is "worth close to zero" and questioned its profitability in a report. Today, with no catalyst, it suddenly almost is. The stock collapsed over 90% in minutes to a record low.

The sudden crash wiped out about $4.2 billion in market value in the stock, which is a member of the MSCI China Index.

...



more from Tyler

Kimble Charting Solutions

Gold Bugs; Stellar performance stage set again

Courtesy of Chris Kimble.

From 2001 to 2011, would you have rather owned the S&P 500 or Gold Miners (Gold Bugs Index/HUI)? If you answered the Gold Bugs index, you would be correct. The left chart below compares the performance of the Gold Bugs Index and the S&P 500. From 2001 to 2011, the Gold Bugs index out performed the S&P 500 by 1,400% (left chart below).

Since 2011, miners have been weaker than the S&P 500 by a large percent. Could the stage be for another period where the mining stocks are going to be stronger than the broad markets again?

...

more from Kimble C.S.

Chart School

Semiconductors Recover at 20-day MA

Courtesy of Declan.

Yesterday's selling didn't follow through with additional losses, instead, indices dug in at lows and managed to recover some of yesterday's selloff.  The best recovery came from the Semiconductor Index. It gained over 1% as it bounced off its 20-day MA. However, it wasn't enough to stop a 'sell' trigger in the MACD and CCI.


Next is the Nasdaq 100. It staged a recovery, but not from a typical support level. Unfortunately, it has a MACD trigger 'sell' from early March and a new 'sell' trigger between the -DI an...

more from Chart School

Members' Corner

Natterings

Check out some new posts from our friend The Nattering Naybob. 

The Big Lebowski Sequel?

Taking a "resp-shit" or "potty break" from "in the Toilet Thursday" or "Thursday's in the Loo"... One of our favorite scenes from the 1998 cult classic The Big Lebowski, the ash can scene where Walter Subchak (John Goodman) eulogizes the departed Donnie (Steve Buscemi) with Jeffrey Lebowski (Jeff Bridges) looking on.

Keep reading: ...



more from Our Members

OpTrader

Swing trading portfolio - week of March 20th, 2017

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 ...



more from OpTrader

Digital Currencies

Bitcoin Tumbles Below Gold As China Tightens Regulations

Courtesy of Zero Hedge

Having rebounded rapidly from the ETF-decision disappointment, Bitcoin suffered another major setback overnight as Chinese regulators are circulating new guidelines that, if enacted, would require exchanges to verify the identity of clients and adhere to banking regulations.

A New York startup called Chainalysis estimated that roughly $2 billion of bitcoin moved out of China in 2016.

As The Wall Street Journal reports, the move to regulate bitcoin exchanges brings assurance that Chinese authorities will tolerate some level of trading, after months of uncertainty. A draft of the guidelines also indicates th...



more from Bitcoin

Mapping The Market

Congress begins rolling back Obama's broadband privacy rules

Courtesy of Jean Luc

I am trying to remember who on this board said that people wanted to Trump because they want their freedom back. Well….

Congress begins rolling back Obama's broadband privacy rules

By Daniel Cooper, Endgadget

ISPs will soon be able to sell your most private data without your consent.

As expected, Republicans in Congress have begun the process of rolling back the FCC's broadband privacy rules which prevent excessive surveillance. Arizona Republican Jeff Flake introduced a resolution to scrub the rules, using Congress' powers to invalidate recently-approved federal regulations. Reuters reports that the move has broad support, with 34 other names throwing their weight behind the res...



more from M.T.M.

Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

...

more from Promotions

Biotech

The Medicines Company: Insider Buying

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

I'm seeing huge insider buying in the biotech company The Medicines Company (MDCO). The price has already moved up around 7%, but these buys are significant, in the millions of dollars range. ~ Ilene

 

 

 

Insider transaction table and buying vs. selling graphic above from insidercow.com.

Chart below from Yahoo.com

...

more from Biotech

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...

more from David



FeedTheBull - Top Stock market and Finance Sites



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...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>