Schaeffer's Trading Floor Blog
Stocks quoted in this article:

The Dow -- currently trending 41.6 points, or 0.3%, higher -- reached a new record high this morning, after the release of several better-than-expected economic reports. Meanwhile, among equities in focus are satellite radio issue Sirius XM Radio Inc (NASDAQ:SIRI), agricultural chemical company Potash Corp./Saskatchewan (USA) (NYSE:POT), and pay-TV provider DISH Network Corp (NASDAQ:DISH).

  • Barclays initiated an "overweight" rating for SIRI ahead of today's opening bell. Over the last year, SIRI has grown roughly 73% to its current trading level of $3.73. What's more, the stock reached a new five-year high of $3.81 on Friday, the day after reporting earnings that arrived on par with analysts' expectations. In this respect, SIRI's Schaeffer's put/call open interest ratio (SOIR) comes in at 0.23, with calls more than quadrupling puts among options expiring in three months or less. This ratio ranks just 2 percentage points from an annual low, conveying Sirius XM Radio Inc's short-term speculators have rarely been more call-biased throughout the past year.

  • The fertilizer sector took a hit yesterday on rumors that a global potash cartel has collapsed. The news led CIBC, National Bank Financial, Canaccord Genuity, Raymond James, Paradigm Capital, TD Securities, and Desjardins to slash their price targets for POT today. Likewise, BMO, Macquarie, and BGC Financial lowered their ratings for the stock. With that being said, POT dropped to a three-year low of $29.00 during yesterday's session, but was last seen lingering near $30.22 today. Stepping back, POT has lost 31.6% year-over-year, and has underperformed the broader S&P 500 Index (SPX) by 14 percentage points during the last three months. In this regard, POT sports a SOIR of 1.78, which ranks higher than all other readings taken throughout the year. In simple terms, Potash Corp./Saskatchewan's near-term traders are more put-heavy now than at any other time over the past 52 weeks.

  • Finally, Barclays introduced an "overweight" rating for DISH this morning. On the charts, DISH has climbed 45% over the last year to its current perch at $44.50. Ahead of next Tuesday morning's earnings report, speculators at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) have bought to open more than 33 DISH calls for every put within the past two weeks. The resultant 10-day call/put volume ratio of 33.37 ranks the highest of all other such annual readings, indicating DISH Network Corp speculators are the most call-heavy they've been all year.

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