Options say YES

"Liberty Media might not want to buy Sirius XM, but investors want to own the satellite-radio stock.

optionMONSTER's Heat Seeker system detected the purchase of more than 145,000 SIRI January 4 calls on Friday, most of them priced for $0.17 to $0.26. The volume was more than double the strike's previous open interest of 68,360 contracts, indicating that new positions were initiated.

These long calls lock in the price where investors can buy SIRI stock, letting them cheaply leverage a move higher. The contracts can also generate significant leverage, but they will expire worthless if shares remain below $4 through early next year. (See our Education section)

SIRI rose 2.08 percent to $3.44 on Friday after Liberty Media Chairman John Malone abandoned a takeover attempt. The move will let Sirius resume a buyback program in a stock that's near the low end of its recent trading range following a steady slide since October.

Later in the session, traders sold about 35,000 January 3 puts in SIRI for $0.22 to $0.24, reflecting the belief that downside is limited . As long as the stock stays above $3, they'll keep that premium as profit.

SIRI was the fourth-busiest name in the option market on Friday, trailing only heavyweights Apple, Facebook, and Bank of America. Aggregate option volume in Sirius was 23 times greater than average, with calls accounting for more than 80 percent of the total."