Dendreon Snapshot Pre-Decision (DNDN)
Dendreon Corporation (NASDAQ: DNDN) continues to see traders and investors position and reposition ahead of the FDA decision on PROVENGE for advanced prostate cancer. A $40 MAY-2010 STRADDLE currently costs right at $13.00, so volatility buyers are effectively betting that Dendreon would drop to under $27 or rise to above $53 before the May 21 expiration date.
Shares are currently down 1.6% at $40.53. The current open interest for the MAY-2010 options expirations is close to 200,000 contracts when you spread across all available strike prices. That is over 20 million shares equivalent on a fully diluted basis.
We do not want to contribute to additional volatility in an already-volatile situation, but Dendreon is not a stock without controversy and PROVENGE is not without controversy. The short interest as of mid-April was listed as over 13.12 million shares, which is the highest in the last year.
The 52-week trading range is $7.50 to $42.60 and average volume is now over 3.5 million shares per day. At the end of 2009, Dendreon had close to $600 million in cash, short-term securities, and long-term securities.
JON C. OGG
Comments
7 Responses to “Dendreon Snapshot Pre-Decision (DNDN)”
Leave a Reply
Bottom line is yes dndn is very volitale. We have seen major swings but what I do know that when the fda does approve this drug we will see a double on this stock in one day. Then if a bidder
comes in then add to the double amount the offering price. In a blink of an eye dndn can be
$100
from your mouth to Gods’ ears
All is very quite about this miricle there are 300,000 cases each year and 30,000 die each year ,yet they are keeping things so quite ,the fda should pass it now ,there have been enough games played stopping this PAS IT NOW STOP PLAYING GAMES .
Every stock goes through a stage of volitility when it’s product goes through any drastic changes, so whats happening to dndn is not surprising. I do believe that dndn is on the threshold of discovering a theapy that could in fact revolutionize chemo-therapy as we know it. I’m staying in, but will watch to see how the company will market provenge and, if successful, will they model that strategy for future drugs which are already in trials. In short, I believe the skys the limit with Dendreon.
The market is expecting the stock to run up to around $51 if approved and drop to around $32 if the FDA doesn’t approval or delays the approval PROVENGE
FDA Approval – Stock Trading Halted after initial surge
wheres my double biotch!