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Dendreon Anonim Ortaklik Message Board

  • rvajr1932 rvajr1932 Aug 21, 2008 4:32 PM Flag

    More Options trades!

    Dendreon (DNDN) – Earlier today we observed a 12% increase in implied volatility that led the excitable Dendreon briefly to our leader board of volatility gainers. The implied volatility reading currently reads 91.3% against a 56.7% historic reading, suggesting 61% additional potential price risk being factored into the options over the next month – but fairly typical of the added risk premium in Dendreon. An increase in option trading volume looked like early defensive positioning ahead of the company’s November 7 earnings. Here it looks like a trader sold 5,000 lots of January 2.50 calls for $3.30 per contract, and bought 5,000 November 2.50 puts for 30 cents apiece, taking a $3 credit on the transaction – more of which the trader will retain if implied volatility drives the value of the November put higher in connection with the earnings catalyst, while the value of the January 2.50 calls is left to erode