For the past two weeks, we’ve told you about the 300%+ gains Options Trading Pit took on Dendreon calls in only six days. . .
. . .the same stock Jim Cramer advised viewers to sell, saying, "This is the one where I got in trouble. . . I do not like Dendreon. I think it is up too much on a spike. Sell sell sell."
But as we all know by now. . . he was dead wrong, keeping his viewers from thousands of dollars in profits. . .
In fact, here’s what our call options did on April 14 — the day Dendreon blew up.
. . .but what if I told you we could do even better a year out?
You’d be all over it like white on rice, right?
On April 14, we closed half of Dendreon for gains of 338% on news that its prostate cancer drug Provenge met the main goals of its Phase III study, and on news that it would seek U.S. approval in the fourth quarter.
You see, unlike traditional vaccines that prevent disease, the company’s Provenge medicine treats it by stimulating the body’s own immune system, says Reuters. And considering that prostate cancer is the most common cancer in American men, "If your doctor says, ‘You’ll have no side effects with this drug and it will probably extend your life,’ who’s not going to take it?"
That reality could turn Provenge into a $200 million product, with the possibility of a $1 billion blockbuster hit if it’s expanded to men with earlier stages of the disease.
But I digress. . .
Why is Dendreon an immediate buy before Wednesday?
On Tuesday at 2:20 pm CST, Dendreon will present more details about Provenge and its possible impact on tens of thousands of men to a very large crowd of urologists and investors at the American Urological Association meeting at Chicago’s McCormick Place convention center. It’s when we could see our next profit boost from a stock that was just $6 earlier this month.
The continued rally in the stock now depends solely on Provenge matching or beating expectations set by the company’s April 14 announcement. While expectations at the meeting are difficult to pinpoint, the CEO did say the survival benefits were "consistent" with results in previous Provenge studies.
That suggests a survival benefit of four to four-and-a-half months when compared with placebo.
Heck, it’s a revolutionary new drug that could change thousands of male lives. . . who wouldn’t be interested in that?
Ian L. Cooper
Editor’s Note: We still have a few slots remaining for Wealth Daily readers to take us on in our 50-trade "gauntlet" challenge. (One reader just claimed a million-dollar windfall from the DNDN trade!) Click here to be among the last few investors to get in on the profit taking.