Sirius XM Radio (SIRI) adds a nickel to $1.78 and SIRI Jan 2 calls are the most actively traded equity options contract through midday Thursday. Volume is more than 40,800 against 274,317 in open interest, which is the biggest OI position in SIRI. The top trade is a 3054-contract block on the 30-cent bid and coincided with a 3054-contract block of Sep 2 calls at the 12-cent asking price. The spread, at 18 cents, appears to be rolling from Sep 2s to Jan 2s and possibly part of an overwriting strategy. The same spread traded at 17 cents, 1087X on ISE, where sentiment data is consistent with a roll out (buying back Sep to open in Jan – customer account). Sep 2 calls on SIRI have traded more than 13,000 against 47,714 in open interest.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.