Sirius Satellite (SIRI) is up a dime to $2.33 on more than 50 million shares traded, which is almost 3X the expected volume for the satellite radio operator. Meanwhile, 36,000 calls and 700 puts traded on the stock. Mar 2 calls are the most actives. Volume is approaching 26,000 and might be seeing some liquidating trades, as most of the volume is trading on the bid and open interest is 75,301. The contract is now 33 cents in-the-money and expiring in two weeks. Meanwhile, Mar and Apr 2.5 calls are the next most actives and are trading predominantly at the offer or asking price. Implied volatility in SIRI options is up 5.5 percent to 44. The company reported earnings on 2/9 and there was minimal reaction to the results. However, the stock is performing well this week and up 11 percent since 2/23. An intraday high of $2.44 set on May 31 comes into play if the stock can break above the July highs of $2.35.
About the Author (Author Profile)
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.