It's time to get serious on Sirius
- Thread starter HolyGrail
- Start date
Quote from hels02:
HUH?! The $5 Jan puts on SIRI are $1.15 on the ask, and the stock's only selling at $3.90. I want your option quotes, where did you find $.05 Jan puts?! That's money for free.
You probably read my post too fast. It says to buy the $4 strike JAN put for a net cost of .20 for an ultra cheap five week hedge
OR
just go long on the $5 strike JAN call for a nickel
More deltas and nearly triple the time for a Mar 6 call (.10)
The OI on the Jan 5s is insane, though. 173,000 contracts? Wow!
Jan 2.5P have it beat with 182,000. I can't imagine that many people are betting on bankruptcy in the next 35 days (or made any money selling those things).
Quote from hels02:
Ahh. Ok
It's not $.20, it's $.30 on the ask, but I get your point. It's a good point too.
Cool .. well its in the money by a dime, which is not subtracting from your bottom line -- so the net cost is .20
The OI is kind of interesting on those Jan 5s. You could take it either way really.
That is a heck of allot of time to buy for March at a mere dime. A very attractive contract for sure.
That is an insane OI though on those Jan2.5P's man. Not sure. The only way they could of sold those would have been like 6 months ago just for time premium, since SIRI has traded higher earlier in the year. But most likely its a combo of people maybe grabbing those to finish off spreads or just pure speculation of a tank.
It may be in a downtrend, but I don't think you know what 'secular' means. Even a crappy, debt-saddled company can't be in a 'secular' downturn, as long as they are expanding their customer base & increasing gross revenues.
Buy fear, sell greed. You very rarely go wrong with that philosophy. I have traded and watched this stock daily since February. I have a basic "feel" when it is about to even make a minor change in direction. The direction from here is up. How far up I can't tell you yet, but nevertheless, it will go up from here.
It's a trade and a good potential long term hold. I've got people in this thread complaining about business models as if they know something about business models. There are only two companies in this sector, and in less than 5 years every car will come equipped with either sirius or xm radios. If that's a bad business model I sure would like to hear what a good model would be for these companies.
