Options Update: Amgen (AMGN) & Genentech (DNA)
Amgen (AMGN)
AMGN Volatility Elevated As Shares Near Five-Year Low
AMGN is recently down $.49 to $41.51.
Goldman Sachs says, "We expectcontinued pressure on AMGN shares, which are trading at a discount todrug stocks. The Phase 3 data on denosumab in osteoporosis ($1+ bnpotential) is expected in 3Q2008."
AMGN is expected report Q1 EPS inlate April.
AMGN May option implied volatility of 38 is above its26-week average of 33, suggesting larger pricemovement.
Genentech (DNA)
DNA Volatility Flat Into EPS, Data & ASCO
DNA is recently down $1.25 to $80.76.
DNA is expected to report Q1 EPS on April 10.
Freidman Billings Ramsey says, "For Avastin, the next interim but probably not the final analysis for adjuvant colorectal cancer is in 2Q. For Rituxan, we should see data for OLMPUS trial in MS in 1H08 and EXPLORER in lupus, also in 1H08."
The American Society of Clinical Oncology (ASCO) Annual Meeting will be held on May 30-June 2, 2008 in Chicago.
DNA April and June option implied volatility of 30 is near its 26-week average of 29, suggesting non-directional price movement.
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About Paul Foster
Paul Foster is a former member of the Chicago Board Options Exchange with 21-years of professional experience in the capital markets, investments, trading, corporate finance, arbitrage, options and mergers & acquisitions. His writing about the options market has appeared in a wide variety of publications.
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