Dendreon (DNDN) saw a morning spike to $7.2 and is now up 47 cents to $6.69 on heavy volume of 5.3 million shares. Options volume on the biotech is running 2.5X the daily average. 16,000 calls and 4,640 puts so far. Weekly $7 calls, which are 4.7 percent OTM and expiring at the end of this week, are the most ctives. 7,660 traded. Aug 7 puts are the next most actives, with 2,140 on the tape. Weekly 8, Aug 8, Aug 9, and Aug 10 calls are also seeing interest and 30-day ATM vols are moving up 23.5 percent to 130.5. Investment web site Benzinga, which posts new unsubstantiated market rumors (that don’t seem to amount to much) almost daily, is reporting Celgene renewed takeover chatter — LINK.
Update: 11:00 EDT. Benzinga citing Twitter as the source of the M&A speculation — LINK. Twitter???
Update: 13:20. Dendreon trading up over 6%; strength being attributed to Provenge (sipuleucel-T) addition to European Medicines Agency list — Briefing. Seems more likely to be the catalyst than the unsubstantiated chatter.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.