Investors "Generally Protective" Into Dendreon (DNDN) May 1 PDUFA Date

Option trading in Dendreon Corp. (Nasdaq: DNDN) has been active into the the May 1 FDA PDUFA date for Provenge, with trading "generally protective" according to analysts.

Options analysts at Susquehanna highlighted that investors bought puts and sold calls through 10,000 May 25p/50c risk reversals (delta neutral). Commenting on this the firm said, "while today's trading was tied to stock, it is possibly that these investors are using this position to protect a long underlying holding..."

One of the more notable trades, according to the firm, was the purchase of 5,000 April 20/25/30 put butterflies, with shares trading around $36 at the time.

Shares of Dendreon are up over 500% over the past year on the blockbuster potential of Provenge, so there is little reason to question why investors are adding protection in the form of options.

Market Moving News and Intelligence - 2 Weeks Free
http://www.streetinsider.com/premium_content.php

You May Also Be Interested In

• Alphabet Sees FY26 Capex $195B To $205B, Saw $180B To $190B
• EU clears Paramount's $110 billion acquisition of Warner Bros
• American Airlines (AAL) call put ratio1 call to 1.3 puts into quarter results