Sirius Satellite (SIRI) is up 6 cents to $2.22 and options order flow on the satellite radio operator seems a bit bearish today ahead of earnings. The company is due to release its results tomorrow morning. Recent trades include a multi-exchange sweep of 4,340 Jan 2 puts for 20 cents when the market was 16 to 20 cents and 3,599 more for 18 cents when the market was 16 to 18 cents. 12000 SIRI Jan 2 puts now traded across the exchanges and data from ISEE is reporting a closing buyer. Sep 2 puts are the second most actives. 6,259 traded, including a sweep of 5,700 contracts for 6 cents and a firm opening buyer, according to ISEE. Share volume is 59 million and well above the recent daily average (of 35.4 million). Meanwhile, 10,000 calls and 21,000 puts traded in SIRI options, which is almost 4X the daily average. 30-day ATM vols are up 13 percent to 53 and the Weekly 2 straddle trades at about 12 percent of spot. The stock has performed well in the weeks leading up to the report, up 20 percent since June. Players in the options market seem to be bracing for a bit of volatility tomorrow.
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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.