Something Brewing At Dendreon? (DNDN)
We just noticed a large options volume alert over at Volume Spike today, and it is one that biotech investors may care about quite a bit more because of the timing. We have witnessed a flurry of trading in Dendreon Corp. (NASDAQ: DNDN) November stock options activity today.
We have seen what would represent more than 2 million shares in a risk reversal trade, although it could be called a myriad of terms depending upon your sophistication in trading. Frankly, most would call it a synthetic straddle.
As far as our calendar is concerned, we didn’t have any major event risk scheduled on the calendar until 2009.
After looking around there is actually some data coming out as soon as October, but the biggest data is still out into next year. This is probably simple to explain. Either someone put on a massive belief trade or they are hedging a large position of stock.
Jon C. Ogg
July 31, 2008