Sirius XM Holdings, Inc. (SIRI) Option Traders Eye Higher Highs

Sirius XM Holdings Inc. (SIRI) call buying sees an uptick

by Digital Content Group

Published on Feb 12, 2015 at 2:19 PM
Updated on Jun 24, 2020 at 10:16 AM

Earlier, Sirius XM Holdings Inc. (NASDAQ:SIRI) hit an annual high of $3.88, and was last seen 1.4% higher at $3.87. Today's price action has opened the door to a fresh wave of options activity, with calls trading at 1.5 the typical intraday rate. Short-term contracts are in high demand, as SIRI's 30-day at-the-money implied volatility has jumped 14.2% to 25%.

Some speculators are looking for the equity to explore territory not charted since October 2013, with possible buy-to-open behavior at the April 4 call. These traders expect SIRI to topple $4 by the close on Friday, April 17, when back-month options expire.

Today's focus on call buying is nothing new for SIRI speculators. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio comes in at a remarkable 42.64 -- only 4 percentage points from an annual peak.

As alluded to earlier, Sirius XM Holdings Inc. (NASDAQ:SIRI) hasn't traded above $4 in over a year. However, the shares have picked up momentum of late, outperforming the S&P 500 Index (SPX) by close to 10 percentage points in the past two months.

Weekly Chart of SIRI Since September 2013 With $4 Level

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