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Thread: Skewed Options Ratio

  1. #1
    Sirius Roadkill is offline
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    Skewed Options Ratio

    August 13, 2010:

    NEW YORK (Market Intellisearch) — SIRI options saw interesting call activity today. A total of 802 put and 4,101 call contracts were traded raising a low Put/Call volume alert. Today’s traded Put/Call ratio is 0.20. There were 5.11 calls traded for each put contract.

    The skewed options ratio suggests that traders are rebalancing their portfolios in anticipation of a price shift. Today’s unusual volume activity directly reflects investor outlook and confirms that a stock move is imminent.

    SIRIUS XM Radio Inc. closed at $1.01 in the last trading session and opened today at $0.99. The stock price declined $0.01 (-0.74%) to $1.00 in today’s trading session. SIRI is trading between the range of $0.99 – $1.01. Volume is 45,490,180 in relation to the three month average volume of 65,934,100 shares. SIRI is trading below the 50 day moving average and higher than the 200 day moving average. The stock’s 52 week low is $0.51 and 52 week high is $1.25.

  2. #2
    SiriMonkey is online now
    Quote Originally Posted by Sirius Roadkill View Post
    August 13, 2010:

    NEW YORK (Market Intellisearch) — SIRI options saw interesting call activity today. A total of 802 put and 4,101 call contracts were traded raising a low Put/Call volume alert. Today’s traded Put/Call ratio is 0.20. There were 5.11 calls traded for each put contract.

    The skewed options ratio suggests that traders are rebalancing their portfolios in anticipation of a price shift. Today’s unusual volume activity directly reflects investor outlook and confirms that a stock move is imminent.

    SIRIUS XM Radio Inc. closed at $1.01 in the last trading session and opened today at $0.99. The stock price declined $0.01 (-0.74%) to $1.00 in today’s trading session. SIRI is trading between the range of $0.99 – $1.01. Volume is 45,490,180 in relation to the three month average volume of 65,934,100 shares. SIRI is trading below the 50 day moving average and higher than the 200 day moving average. The stock’s 52 week low is $0.51 and 52 week high is $1.25.

    In your opinion SRK, are we going up or down?

    BTW, enjoyed reading your thoughts in the news section
    under Insulation from Economy. Very knowlegable and enlightening.

    Obviously SiriusRoadKill, you're much more then just a pretty name.

    Julie

  3. #3
    Sirius Roadkill is offline
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    Quote Originally Posted by julietoo View Post
    In your opinion SRK, are we going up or down?
    Julie
    -------


    Yes

  4. #4
    sxminvestor is offline
    Quote Originally Posted by Sirius Roadkill View Post
    -------


    Yes
    Are they buying calls or selling covered calls ? that is the question.

  5. #5
    Sirius Roadkill is offline
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    Quote Originally Posted by sxminvestor View Post
    Are they buying calls or selling covered calls ?
    Yes.








    ok, sorry, couldn't resist . . here's an interesting read (excerpt below from "4. Conclusions"):

    "In our empirical investigation we demonstrate a strong link between recent changes in
    aggregate put open-interest levels and the future underlying equity price movement. We sort
    firms into quintiles based on our open-interest variables and find strong relationships between
    these measures and future equity returns. Firms with increases in recent put open interest greatly
    underperform those firms that have seen declines in put open interest. Call open-interest changes
    portend the opposite effect, but the relationship is much less pronounced. The most effective
    open-interest predictor of future equity returns is the ratio of the recent changes in call open
    interest to put open interest. Large increases in the ratio are followed by relatively strong future
    stock returns."

    http://www.fma.org/NY/Papers/OptionO...ityReturns.pdf
    Last edited by Sirius Roadkill; 08-15-2010 at 06:47 PM.

  6. #6
    Sirius Roadkill is offline
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    August 16, 2010

    NEW YORK (Market Intellisearch) -- SIRI options saw interesting put activity today. A total of 2,686 put and 3,058 call contracts were traded raising a three month record high put volume alert. Today's traded Put/Call ratio is 0.88. There were 1.14 calls traded for each put contract.
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    Last edited by Sirius Roadkill; 08-16-2010 at 07:09 PM.

  7. #7
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    . . . . . . . . . . .
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  8. #8
    Sirius Roadkill is offline
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    August 19, 2010 | Schaeffer's Market Commentary

    Sirius XM Radio Inc. (SIRI) scored a bullish brokerage note this morning, as Maxim Group initiated coverage of the shares with a "buy" rating. Despite SIRI's notorious fundamental and technical struggles, most analysts share Maxim's upbeat opinion -- Zacks reports four "strong buys," compared to just two "holds" and zero "sells."

    SIRI is up 2% in electronic trading, with the stock inching above the $1 level. The shares have recently capitalized on familiar support at their 32-week moving average, which has contained SIRI's pullbacks since July.

    If the skeptics are spooked by today's optimistic analyst note, SIRI could benefit from an unwinding of bearish bets. The equity's 10-day ISE put/call volume ratio of 1.16 rests in the 97th percentile -- within striking distance of an annual pessimistic peak -- and short interest accounts for 5.6% of SIRI's float.

  9. #9
    SiriuslyLong is offline
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    At this point, any price action would be welcome. LOL. I've been long for 4 years, I'm staying long. I'm mad as hell I didn't buy those 5 cent shares I had queued up.

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