Sirius Satellite (SIRI) adds 7 cents to $2.99 after Goldman initiated the satellite radio company with a Buy rating. In options action, a 37000-lot of Dec 3 calls trades on SIRI at a nickel per contract on the International Securities Exchange. Data from the ISE is indicating a customer sold the position, to close. It might exit positions opened Thursday when more than 77,800 Dec 3 calls traded on SIRI for a VWAP of 3.1 cents per contract (see 12/13 color). Today’s upgrade seems to have saved the call buyer’s bacon, because these now at-the-money call options would be trading for just pennies if not for the 2 percent bump in the stock today. December 2012 equity options expire at the end of the week.
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.