The Stock For All Seasons

Entering the Alley of The Redolent Rodent, Ming scuttles past the Happy Dragon Opium Den, The Shameless Pickpockets & Conflicted Panel Members Guild Hall and even Madame Woo's House Of 1001 Illicit Delights. Girls all wave to best customer Ming who cringingly slinks into the offices of his financial advisor, Sum Dum Luk. He asks the wise one why Dendreon has so large a call option open interest. The venerable Sum solicitously wonders how a naif like Ming crosses streets unaided as he explains that institutional longs can earn upwards of 40% a year lending their Dendreon at interest to shorts while simultaneously selling calls on their position. A reticent Ming humbly wonders if they aren't afraid of losing their position on announcement of good news. Sum says this is only a lost opportunity cost on one of the various biotechs they do this with. An adddled brained Ming then timidly asks who buys such calls and is told those who anticipate ultimate approval can leverage a long position which even when successively rolled over when out of the money on expiration can still provide a greater profit than a purchase and hold of the underlying stock. Everyone can win with Dendreon chortles Sum Dum Luk and this doesn't even require some dumb luck.