I just bought a bunch of SIRI Mar $6 calls for $1.60 solely because Mel Karmizan is on Mad Money Wednesday and I expect Cramer to hit all of his buy buttons on this one.
At 12:30 Forbes ran an article with SG Cowen raising SIRI outlook to $10, which I think is crazy (valuing the company at about $13Bn before they turn a profit) but I’ll take a 20% run if I can get it.
With the stock currently at $7.11 it is well off the $7.62 it pulled back from on the 17th so I think it’s quite reasonable to expect to at least challenge that again on Thursday.
The option should move penny for penny with the stock so a .50 move will return a healthy 30% but I will have my finger on the trigger as soon as it crosses $7.40 as no run up has gone unpunished with this stock.
We are just on the anniversary of the Stern announcement that doubled the stock last year but it hasn’t seen $9 since last December. I still like this stock for a buy and hold for 10 years play (see other articles) but it’s very dicey in the short term.
