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Biotech Shares, Options Spike on Lilly Deal Talk

Shares in biotech company Dendreon have spiked, along with options trading — amid rumors involving some kind of deal with Eli Lilly.

Call volume in DNDN was hot Tuesday morning in the first 30 minutes alone, as 6,700 calls traded against 1,000 puts, according to OptionMonster's tracking systems. By comparison, Dendreon traded 4,600 calls in yesterday's entire session and averaged 7,000 per day for the month of December.

  • Dendreonsharesnow:

Dendreon is scheduled to present Thursday at a major health care conference held by JPMorgan in San Francisco this week.

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Rumors have followed many companies in the biotech and pharmaceuticals space as the industry continues to see M&A activity, including announcements earlier today that Elan may explore a sale and that the Medicines Company intends to buy Targanta .

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Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.

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