DNDN trade is back on!!!!

Buy the stock!

Some of the overhand on the stock concerning medicare issues seem to have lightened up.

WSJ: "Shares in Dendreon rose more than 6% after Medicare authorities scheduled a Nov. 17 meeting to consider coverage of the company’s Provenge prostate-cancer treatment — and investors concluded the question of whether or not to pay for the therapy was not an issue."

This means the risk trade on the stock is back on! I saw this stock trade in the 50's before this whole mess with Medicare started. There's no reason for this stock not to move back to this range. 

How should we play DNDN? Look into a covered call strategy or sell puts ATM to take advantage in the uptrend behind this stock. I believe selling an ATM put at current price levels will likely result in the stock not being "put" to the investor. If that were to occur, the elevated option premiums would create an interesting opportunity to create income/reduce cost basis by writing calls against your position.

If we are exceptionally bullish,  I would take a look at the OTM options. The October 50 STRIKE did very well (more than doubled today) and will likely continue to trend higher. I think its possible for it to double once more over the next few weeks. 

The trade? Wait to see if the stock pulls back tomorrow and if it does not, take a look at the October 50 strike CALLS or the ATM puts!