28-08-07

Back in DENDREON.

Our order to sell 20 January 2009 USD 2.50 puts DENDREON (DNDN - USD 8.07) at a price of USD 0.90 was filled last week. Till the strike of USD 2.50 Dendreon can drop by 69% from the actual levels. Even if the stock would fall by 69% by January 2009, we will still make USD 1.800 (the premium we received from selling the puts). This implies a return of 36% on the amount needed for a possible purchase of the stocks (1.800/5.000). Remember that we use a 100% margin rule for safety reasons. No leverage in this portfolio. Only in case the stock would trade below USD 1.60 in 16 months time we would make a loss on the position: in other words, DNDN is ‘ allowed’ to sink by as much as 80 % before we make a loss on the position. Here is the actual option price: http://finance.yahoo.com/q?s=ORGMZ.X.

Our portfolio is now worth almost USD 72.000 (annualized return of 15%), and invested for about 80 percent. The current holdings are concentrated predominately in 3 sectors:

1. Alternative energy with positions in EVERGREEN SOLAR (ESLR - USD 8.73), HEADWATERS (HW - USD 15.46) and PACIFIC ETHANOL (PEIX - USD 11.81);

2. Biotechnology with positions in ACADIA PHARMA (ACAD - 14.33), DENDREON (DNDN - USD 8.07) and YM BIOSCIENCES (YMI - USD 1.69);

3. Commodities with positions in COEUR D’ALENE (CDE - USD 3.31), GOLDEN STAR RESOURCES (GSS - 3.03) and CRYSTALLEX (KRY - USD 2.88).

16:29 Gepost door in Orders | Permalink | Commentaren (0) | Tags: kry, gss, hw, peix, ymi, cde, acad, dndn, eslr |  Facebook |

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