Your options crashed because implied volatility runs up prior to anticipated news releases and collapses afterwards.
If you're up 1500% on your calls, you should be taking some money off the table (roll or close some) or hedging the gains (buy puts, convert to spreads, short some stock) etc.
Yep. We knew it's be halted. Rumor was 2. I closed out everything into CNBC. But I tried to buy back at 11 and change, and it was halted. It was a know event. The time, that was the variable. you had to play safe. Good news? I think this is much higher. Do some reading,fuck Wall St. This is a blockbuster drug. Maybe a little shake and bake, but this is very real. "The prospect of an unpartnered cancer drug with strong data from a company with a platform that could produce future pipeline candidates may be too good for suitors to pass up - especially as Dendreon still only has a market value of $2.3 billion. Last year, Eli Lilly & Co (LLY) paid $6.5 billion for ImClone Systems, citing its attractive pipeline of biologic cancer therapies, even though ImClone's only product, cancer drug Erbitux, was already partnered with Bristol-Myers Squibb Co. (BMY)." -Thomas Gryta; Dow Jones Newswires; 201-938-2053; thomas.gryta@dowjones.com
Anyone that is up huge on a position ahead of important news and does not book some or all profits is taking a huge risk. I bet you remember the lesson next time these circumstances occur.
I knew that it would be halted, but I was under the impression it would be halted at 2pm, obviously some big players new it would be halted sooner and pulled that crushing move. I did hedge my bet, I owned puts as well as my calls I should have taken some off the table, but I wasnt able to since the stock was halted so abrubtly after that move. I definitely learned a good hard lesson on these plays, but I think that drop is bullshit. Nasdaq got paid good money to let those trades stand. Havent been screwed like that since my exgirlfriend
This stock is a trading vehicle as in it will take your ass for a horrific ride at any moment's notice.
I don't see how change in price of your options has *anything* to do with that drop. Zero, zip, nothing. As others said, it's because of implied volatility that your options were so rich in the first place. As of two days ago, DNDN could've gone to either 0 or 100 as soon as the news broke... therefore, options were extremely rich. Immediately upon the news being known, we knew the price wasn't going to 0 or 100, and implied volatility went poof. Again, *nothing* to do with the drop in price. Only those who bought/sold within that quick drop were affected by it.
Do you trade options? Yes implied volatility plays a large role, but the price of the stock will be a bigger indication on the option value. The closer the stock comes to the strike price, the valuation increases.
The market is nothing but a financial casino, and wall street is the house. Expect that someone is going to get screwed daily, so you carve out profits were you can.