Schaeffer's Option Blog: Short-Term Speculators Give Sirius XM Radio Inc. a Wide Berth

2009-06-26 22:33:05 -

Option players are avoiding short-term trades on Sirius XM Radio Inc.
(NASDAQ: SIRI). Among all July- and August-dated contracts, there are just 11 calls and 236 puts lingering in open interest. Considering the shares are languishing just shy of $0.50 marker, this isn't too surprising -- we're looking at a very, very limited number of strikes with which to make reasonable bets on near-term price changes.

However, speculative investors aren't dodging SIRI altogether. Open interest ramps up significantly out in longer-dated series, where a notable accumulation of 37,530 calls can be found at the September 1 strike. Likewise, the December 1 call has drawn a crowd of 23,955 contracts, with another 1,507 contracts changing hands today., as traders on the ISE have rarely shown a greater appetite for BAC's call options.

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Schaeffer's Investment ResearchElizabeth Harrow, 513-589-3800 eharrow@sir-inc.com : mailto:eharrow@sir-inc.com