Anyone playing Denderon earnings today? (trading, calls, puts, investor)

[howard555]

I bought shares for $6.20 and sold the weekly $6.00 call option for 83 cents. My net cost = 5.37
Since my cost is so close to $5.00, I do not need too much protection.
I can sell weekly $5.00 calls, each week to get out of a mistake, if it is a mistake.
So, I bought the August 5.00 puts for 37 cents.
I can sell weekly puts against that, for the next 3 weeks.
This stock has drugs aleady approved, and would be a good takeover target.
That should keep a floor under the stock. It's 52 week low is $5.69, so my net cost is 5.6% lower than it's 52 week low. There should be limited downside. The earnings estimate is a loss of 59 cents, but with a loss expected, it may not matter much, whether they lose 59 cents, or 49 cents, or 69 cents.

I don't need a takeover until after August 3rd. Otherwise my stock sells for $6.00 and I make 63 cents on the stock, less 37 cents paid for the puts = net profits of 26 cents or $260.00 by this Friday if there is a takeover this week. No real rumors in the news, so I am not expecting a takeover any time soon, but DNDN has to be on big pharma's watch list.

Go DNDN

[samnyc]

DNDN is down close to 3%. Currently trading around 4.62. You still like this?

[howard555]

Originally Posted by samnyc

DNDN is down close to 3%. Currently trading around 4.62. You still like this?

The stock was over $6.60 the day of earnings, so it is off more than 3%.

I sure am glad weekly options were available.
I sold the weekly $6.00 calls for 83 cents and just bought them back for 1 cent.
I'm trying to sell the weekly $5.00 call, if the stock will pop up 15-20 cents today.
Otherwise the weekly $4 puts I sold for 9 cents will expire worthless.
The August $5.00 puts I bought for 37 cents, or really 28 cents (37 - 9 = 28) are now worth 61 cents.

I'm waiting until Thursday, tomorrow, when the August 10th options open, and will consider selling weekly calls and puts.

The revenues were a little light, and the earnings were not that bad. I think most of the drop is because they are laying off 600 workers.

The stock is down $2.00 since earnings. My losses on paper are only 45 cents per share.
and very importantly, I can sell weekly calls and puts for the 10th and 17th.
Options clearly saved me, on this.
I recommend using options for certain types of investors.