Its that time of year. The darkness comes sooner, the shadows grow longer and something wicked this way comes.
As Halloween approaches, not only will Freddie Krueger leave you screaming in horror, something in your portfolio could be equally dangerous.
That’s right, we’re talking scary stocks –companies that have reached faint- inducing heights during the market’s monster run.
So which name is making the Pit Boss tremble with fear? Dendreon !
Earlier this year the stock was trading $3 and then popped on positive Provenge results, he explains. Although the stock could go to $40 if the drug delivers on all its promises, if it does not it’s going to drop like a cannon ball out of the Tower of Terror.
So, the trick is to not get caught if results it plunges. The treat is to own it with some puts on the downside and some upside calls.
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Trader disclosure: On October 26th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Najarian Owns (BIDU) Dec. Call, Is Short (BIDU) Nov. Call; Najarian Owns (DNDN) Calls, Owns (DNDN) Puts; Najarian Owns (YHOO), Is Short (YHOO) Calls; Terranova Is Short (FCX)
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