The markets were mostly range-bound today, ending relatively flat near where they started. Oil saw a decline of 4% as the Iran crisis premium comes out of the energy market. Markets liked Friday's strong jobs report with 4.4% unemployment rate; but concerns over China trade issues worried it.
The NYSE had volume of 2.3 billion shares with 1,599 shares advancing while 1,666 declined for a gain of 2.64 points to close at 9,429.21. On the NASDAQ, 1.7 billion shares traded, 1,348 advanced and 1,709 declined for a loss of 2.16 to 2,469.18.
Dendreon Corporation (NASDAQ: DNDN) rose $5.53 (31%) to $23.58 the stock is expecting FDA approval of Provenge prostate drug. Stocks moving today included: Dow Chemical (NYSE: DOW) talked up $2.16 (5%) to $46.63 on buyout rumor. Sotheby's (NYSE: BID) was bid higher to $2.07 (4%) to $49.27 on an analyst upgrade. Mirant (NYSE: MIR) charged higher $3.44 (8%) to $44.08 as the board committed to looking at "strategic alternatives." Burlington Northern Santa Fe Corporation (NYSE: BNI) steamed up $5.36 (6%) to $88.08 after news that Buffett had bought 10.9% of the company.
In options: Dendreon (NASDAQ: DNDN) definitely saw the most action today. It traded 36,000 calls on the April 20 (UKODD), 26,000 calls on the April 22.50 strike; 45,000 calls on the April 25 calls (UKODE) and 24,000 calls on the April 30 (UKODF) strike. Not to be left totally out of the action on DNDN, the puts came on our screens as the April 20 (UKOPD) puts moved 21,000 contracts. With the pending FDA approval of Provenge more movement on the stock is possible. NRG Energy Inc. (NYSE: NRG) saw heavy volume on the January 75 calls (WYIAO) with over 30,000 options trading. If this is a call purchase it would be a very bullish longer-term position and likely the result of MIR's announcement it was looking at strategic alternatives. MIR made a failed takeover attempt on NRG last year. QualComm (NASDAQ: QCOM) saw heavy volume on the July 50 calls (AAOGJ) with over 29,000 contracts and on the April 40 puts (AAOPH) with over 36,000 contracts trading. In options there were 3.1 million puts and 3.9 million calls traded for a put/call open interest ratio of 0.80.
Kevin Kersten is an analyst with InvestorsObserver. DISCLOSURE NOTE: Mr. Kersten owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about.
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