11:00am (EST)

After weeks of waiting, Dendreon (DNDN, $18.72, up $11.42) finally announced the news we have been waiting for. The company said its prostate cancer treatment Provenge was successful in prolonging patient survival but details of the study are being withheld so that they can be presented at a medical conference later this month.

The stock is off its high of $22 but what a windfall it has been for some of you. I have been pounding the drum on the news coming up early and held to my guns on saying this news was going to be positive. It felt like I had the world on my shoulders because there were so many people telling you to sell. Even the famous Jim Cramer said to “sell, sell, sell” the shares.

That is what makes the hype of Wall Street both bad and good. For “Mad Money” and Cramer to issue negative comments on the stock was ridiculous especially when they didn’t know the story.

I have been following Dendreon for years and I reported on the story when it broke two years ago. You can read the original write-up here. The article is titled “Dendreon, The Perfect Storm”

I said history had a good chance of repeating itself when I profiled the story again and some call option plays back on March 20th.

Less than a month ago, the April 10 calls (UKODB, $11.00, up $10.68) were profiled at 40 cents and closed yesterday at 32 cents. The May 7.50 calls (UKOEU, $13.50, up $10.85) were trading for $1.50 at the time and closed at $2.65 yesterday.

I had also mentioned Sunday night that it would be a good idea to pick up the August 10 calls (UKOHB, $11.20, up $9.00) and they closed at $2.20 and were very active yesterday.

The company’s CEO came on TV this morning and said that they expect to submit an application to the FDA in the fourth quarter which means by the end of the year and it will take another 6 months to get the drug approved. Of course, that is the worst case but the FDA can “fast-track” the drug if it choices too.

In any event, it has been a banner day for many of you that have been following me for the past year. And what better way to celebrate our 1-year anniversary with a monster trade like this one. I told you that these types of trades only come around a few times a year and I’m glad I got you in this one.

Please send me your stories if you made any money with the trades. I hope you are celebrating the day as much as I am.

Rick Rouse