Puts in Demand at Dendreon
by Option Review - June 30th, 2011 4:19 pm
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…
Sabrient Select Opportunity Virtual Portfolio
by Sabrient - July 12th, 2010 5:05 pm
Sabrient’s Scott Martindale is shorting CCI. PSW has been been posting email notifications when Scott adds, decreases or closes a position. For a free trial – to get SSOP’s actions directly – click here and sign up. The Dark Horse Hedge Virtual Portfolio is free and can be followed here and in the Sabrient section at PSW. - Ilene
Sabrient Select Opportunity Virtual Portfolio
Sell Short CCI
The market is hugging the flat line today, awaiting a week chock full of economic reports, earnings announcements, and options expiration activity. The small caps are underperforming pretty strongly today.
With the risk more pronounced to the downside after last week’s short-covering rally, and the markets staring at resistance from the descending triangle (shown in my Week Ahead message earlier today), I’m looking to add another short position.
Crown Castle International owns, operates, and leases towers for wireless communications. It carries a STRONG SELL rating in the Sabrient Ratings Algorithm, a dismal Company Outlook Score of 1 and Value score of less than 1.
I am adding it as a Short position to the Select Opportunity Virtual Portfolio at a price of $37.46.
I’ll keep a mental stop of a closing price above Friday’s high around $38.90.
Also, regarding short position HST, I’m continuing to watch it closely but taking no action on it today.
Best Regards,
Scott Martindale