Market Overview

Unusual Option Activity - Dendreon Corp.


Biotechnology company Dendreon Corp. (NASDAQ: DNDN) saw its shares trade more than 20 percent lower on Tuesday after posting disappointing Q2 sales results for its therapeutic cancer vaccine.

Option activity is currently seven times the company's daily average of 11,000 contracts. By far the largest trade saw an investor purchase the August 7 call-6 put strangle 10,000 times for $1.36 and sold the November 7 call-4 put strangle an equal number of times for $0.92. Open interest suggests the August combo was closing and the November opening.

This roll will see the initiator pocket the premium collected today as long as the shares close between $4.00-$7.00 at November expiration. Quite a stance to take considering the stock set a new 52 week low today of $4.73 and carries a 52 week high of $37.19!

Posted-In: Options Markets Trading Ideas


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