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Author Topic: SIRI  (Read 1945 times)

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Seer58

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SIRI
« on: August 07, 2012, 06:50:12 PM »

Have had this one on radar for over a year...tremendous earnings/revenue release today...blew the estimate out of the water, not even in the same pool...big things possibly down the road...lot of potential on the upside here...relatively inexpensive on the call side for a position in the later months...a whole truckload of open interest in the jan13  $3 calls...96k...last trade today was @ .04...not much open interest on the march....yet....the jan 13 $2 are way undervalued, trading pretty much at actual value @ .36, with 5 months plus still to expiration..watching close to see if that open interest starts to jump on march...191m traded today vs a daily avg of 42m...link to todays news....
http://www.businessweek.com/news/2012-08-07/sirius-xm-boosts-profit-forecast-after-adding-radio-subscribers
« Last Edit: August 07, 2012, 06:58:39 PM by Seer58 »

Offline Brown Recluse

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Re: SIRI
« Reply #1 on: August 07, 2012, 07:15:46 PM »

Have had this one on radar for over a year...tremendous earnings/revenue release today...blew the estimate out of the water, not even in the same pool...big things possibly down the road...lot of potential on the upside here...relatively inexpensive on the call side for a position in the later months...a whole truckload of open interest in the jan13  $3 calls...96k...last trade today was @ .04...not much open interest on the march....yet....the jan 13 $2 are way undervalued, trading pretty much at actual value @ .36, with 5 months plus still to expiration..watching close to see if that open interest starts to jump on march...191m traded today vs a daily avg of 42m...link to todays news....
http://www.businessweek.com/news/2012-08-07/sirius-xm-boosts-profit-forecast-after-adding-radio-subscribers


Just took a quick look those options are ridiculously low. 
Extremism is so easy. You've got your position, and that's it. It doesn't take much thought. And when you go far enough to the right you meet the same idiots coming around from the left.

Clint Eastwood

Seer58

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Re: SIRI
« Reply #2 on: August 07, 2012, 07:58:28 PM »
I think so too brown...only reason I haven't jumped in on this a long time ago is the o/s total...3.8b...slow mover...turtle speed..thats why I like the later months...lots of new long positions taken today, could be prime for a small pullback next few sessions...lets see how long this momentum sticks around...next pullback could be the right entry...$400 gets control of 10k shares with those jan 3's...I still like the march play better though with that o/s total..$900 gets control of 10k shares with the last today on the march 3's, gonna wait it out awhile...would be a long termer for me, so the open interest on those march will fall in line eventually...still in watch mode..

Offline Brown Recluse

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Re: SIRI
« Reply #3 on: August 07, 2012, 10:30:30 PM »
Yea I noticed the O/S total and was like oh I see why the share price is so low.  Not sure if I want to take this on.  Another not.. might make more sense to buy the more expensive closer to the money calls and get less contracts.... less commissions to be paid.  Think about it.. we are buying options or at least I am without the intention of exercising them... I just want to sell the options at a higher price.. so I think we can make the same gains on the higher price options and pay less commissions.  If I invest $1000 and it goes up 200% I d rather have 3 calls than 20.. less commissions.
Extremism is so easy. You've got your position, and that's it. It doesn't take much thought. And when you go far enough to the right you meet the same idiots coming around from the left.

Clint Eastwood