Sirius Satellite (SIRI) drops a dime to $2.59 in active trading of 48 million shares. Options order flow on the stock is interesting, as about 29,000 calls and 2,350 puts traded in SIRI today, a ratio of more than twelve-to-one. Investors are showing the most interest in Dec 3 calls, which have traded 14,700 contracts. The action includes a recent sweep of 3,874 contracts for 4 cents when the market was 2 to 4 cents. It was quickly followed by a sweep of 1,703 Jan 3 calls for 8 cents when the market was 7 to 8 cents. 3,280 traded total. Jan14 $3.5 calls are also busy, with more than 4,000 on the tape so far. Meanwhile, implied volatility in the options oin SIRI is moving up 2 percent to 44 and the bullish order flow on the stock is possibly related to news yesterday that Liberty Media bought more than 4 million shares of SIRI from 11/9 to 11/13. LMCA has made loans to and entered forward agreements to buy shares of Sirius in recent years, leading some investors to believe it is trying to take control of the satellite radio operator.
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.