Friday, June 1, 2007
Another extremely active options family today are calls and puts of Dendreon (DNDN). Call volume, in particular, has the upper hand. With FDA approval unlikely until sometime in 2008 for its Provenge treatment for prostate cancer, what would be causing the speculative froth? The big cancer mecca known as ASCO that got underway today. While I have a long position for the long haul, short term speculators are jumping into the option on the hope DNDN will announce a partnership with a big pharmaceutical company at some point during ASCO. This is a rumor that's been around for a while, but ASCO is seen as an opportunistic time for such an announcement. Stay tuned.