How High Can SIRI Keep Streaming?


Monday, March 13, 2017

Trading low-priced stocks can often be a fools errand. Inexperienced traders are drawn to penny stocks, but these names are generally inexpensive for a reason.

However, Sirius XM SIRI – NASDAQ might be the exception to the rule. While SIRI is only $5.44, the company is valued at $24.5 billion dollars. And so far this year, shares are up 35%.

According to a trade we spotted crossing the tape, expect more strength. Earlier today, a customer bought 30,000 SIRI April 5.5 calls.


At just $0.14 per contract, “only” $420,000 was spent but don’t discount it. This trade was still plenty unusual as SIRI trades 5,523 call options per day on average.

Given a break-even price at expiration of $5.64, SIRI needs to increase 3.7% for this trade to pay off. If SIRI can keep streaming higher, this customer is primed to make $300,000 for every $0.10 above $5.64.

The Future of Trading: Founder Bryan Bottarelli explains the challenges of trading in the current market environment, and how to adapt, outsmart, and prosper. Learn which indicator he’s calling the future of trading, and how you can access it for free. What is the future of trading?

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