Option update 12-7-07: Genentech volatility settles

Posted Dec 7th 2007 3:44PM by Paul Foster
Filed under: Costco Wholesale (COST), Genentech Inc (DNA), Options

Genentech (NYSE: DNA) is recently down $1.43 to $68. The FDA's Oncologic Drugs Advisory Committee rejected Avastin for the use in breast cancer on December 5. DNA January option implied volatility spiked to 39 on Dec. 5. DNA January option implied volatility of 26 is near its 26-week average of 25 according to Track Data, suggesting non-directional price risk.

Costco (NASDAQ: COST) shares are near a record high. COST is expected to report Q1 EPS 59 cents on December 13, according to Thomson First Call. COST December 70 straddle is at $4.30. COST January option implied volatility of 29 is near its 26-week average according to Track Data, suggesting non-directional risk.

Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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