Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Calls and Puts for Income -- Ignore unavailable to you. Want to Upgrade?

To: Jerome who wrote (188)	4/15/2007 4:07:10 PM
From: Mike Buckley	Respond to of 5891

DNDR... is a great play, but comes with more than moderate risk. On a little bit of poor news it could also sink to 7 or 8. It's important to recognize that VERY big news is expected from the FDA by May 15. It could come sooner. If the news is very bad, I think the stock could return to $4. Similarly, if the stock news is very good, it might soar to $40. I would discourage anybody who is not intimately familiar with the details of the recent public meeting of the FDA's advisory committee and many other pertinent details from making a play with Dendreon options. The symbol is DNDN, not DNDR. --Mike Buckley

To: Jerome who wrote (188)	4/15/2007 4:18:42 PM
From: im a survivor	Read Replies (1) \| Respond to of 5891

Agree. But even if it does fall that far, that would be the adjusted cost basis anyway, around $7.75 - $8 The news I have been reading has been both positive and negative...some are saying the drug will get fda approval on the 15th, while others say they will have to do further studies. I look at it like this. Stock is all over the place but was at $5 and ran to I think $25. Currently at $17.75 and you can sell the may $10's for around $2bucks. That is a very nice premium and stock would have to fall alot(it could) to be assigned, but if assigned at $10, adjusted cost basis would be around $7.75 - $8. So, the question is do I want to take very nice premiums in exchange for possibly having to own DNDN for about $7.75. Then write CC's against it if assigned, and if the PPS and premiums allow for CC's. Anybody else gonna play this? I'm still curious on Bridges play I commented on earlier as it seems to guarantee a profit, assuming stock stays within a certain range and I believe the range was from $10 - $30...would like to hear more opinions on it...TIA....