Unusual Options Activity Fri 6/21/24

The following options are exhibiting notable trading, potentially indicating changing sentiment toward the underlying stocks, and/or potentially representing positioning for increased volatility.

Bullish Call Activity:

• SIRI Weekly Jun29 5.5 calls (volume: 2090, open int: 340, implied vol: ~92%, prev day implied vol: 61%). We noted activity in the Weekly Jun29 3.5 calls yesterday (see 6/20 13:23 OPTNX). Co is expected to report earnings late July.
• INTC Jun 31 calls (volume: 14.6K, open int: 19.4K, implied vol: ~36%, prev day implied vol: 33%). Co is expected to report earnings late July.
  
• PLTR Jun 24.5 calls are seeing interest with the underlying stock down 7% (volume: 14.8K, open int: 11.2K, implied vol: ~41%, prev day implied vol: 39%). Stock was  downgraded to Sell from Neutral at Monness Crespi & Hardt; tgt $20. Co is expected to report earnings early August.

Bearish Put Activity:

• CVNA Sep 75 puts (volume: 25.1K, open int: 510, implied vol: ~65%, prev day implied vol: 55%). 25K traded in a single transaction. Co is expected to report earnings early August.
  
• SMCI Jun 850 puts (volume: 4570, open int: 3710, implied vol: ~78%, prev day implied vol: 73%). Co is expected to report earnings early August.
  

Sentiment: The CBOE Put/Call ratio is currently: 0.87, VIX: (13.07, -0.21, -1.6%).
Today is options expiration -- the last day to trade June equity options.

Unusual Options Activity Thur 6/20/24

The following options are exhibiting notable trading, potentially indicating changing sentiment toward the underlying stocks, and/or potentially representing positioning for increased volatility.

Bullish Call Activity:

• SIRI Weekly Jun28 3.5 calls (volume: 9.8K, open int: 30.9K, implied vol: ~92%, prev day implied vol: 60%). Co is expected to report earnings late July.
• CIFR Jul 6 calls are seeing interest with the underlying stock up 6% (volume: 30.0K, open int: 33.8K, implied vol: ~117%, prev day implied vol: 89%). 17.9K contracts traded in a single transaction. Co is expected to report earnings early August.
• MARA Jun 21 calls (volume: 15.9K, open int: 15.6K, implied vol: ~91%, prev day implied vol: 85%). Co is expected to report earnings early August.
  

Bearish Put Activity:

• DJT Jun 25 puts  are seeing interest with the underlying stock down 13% (volume: 8630, open int: 10.2K, implied vol: ~123%, prev day implied vol: 85%). Co announced SEC effectiveness of Amended Form S-1. Co is expected to report earnings mid-August.
• ARM Jun 165 puts are seeing interest with the underlying stock down 6% (volume: 4760, open int: 1970, implied vol: ~74%, prev day implied vol: 64%). Co is expected to report earnings early August.
  

Sentiment: The CBOE Put/Call ratio is currently: 0.87, VIX: (13.38, +0.90, +7.2%).
Tomorrow is options expiration -- the last day to trade June equity options.

Unusual Options Activity Tue 6/11/24

The following options are exhibiting notable trading, potentially indicating changing sentiment toward the underlying stocks, and/or potentially representing positioning for increased volatility.

Bullish Call Activity:

• RIOT Weekly Jun14 10 calls (volume: 7.4K, open int: 10.2K, implied vol: ~79%, prev day implied vol: 73%). Co is expected to report earnings mid-August.
• SIRI Jun 2.5 calls (volume: 15.4K, open int: 590, implied vol: ~50%, prev day implied vol: 45%). 1330 contracts traded in a single transaction. Co is expected to report earnings mid-July.
• INTC Weekly Jun28 31.5 calls (volume: 2310, open int: 510, implied vol: ~33%, prev day implied vol: 31%). Co is expected to report earnings late July.
• WFC July 65 calls (volume: 20.6K, open int: 24.7K, implied vol: ~27%, prev day implied vol: 25%). 17.2K traded in a single transaction. Co at conference said older office buildings in large cities are seeing some stress related to commercial real estate. Co is confirmed to report earnings July 12 before the open.
  

Bearish Put Activity:

• X Weekly Jun14 36 puts (volume: 1200, open int: 0, implied vol: ~36%, prev day implied vol: 32%). Co is expected to report earnings late July. In late May, US Steel and Nippon Steel announced receipt of all non-U.S. regulatory approvals for merger.
• ORCL Jun 122 puts are seeing interest ahead of earnings tonight (volume: 1600, open int: 710, implied vol: ~36%, prev day implied vol: 33%).
  

Sentiment: The CBOE Put/Call ratio is currently: 0.90, VIX: (13.15, +0.41, +3.2%).
June 21 is options expiration -- the last day to trade June equity options.

Unusual Options Activity Fri 10/6/23

 

The following options are exhibiting notable trading, potentially indicating changing sentiment toward the underlying stocks, and/or potentially representing positioning for increased volatility.

Bullish Call Activity:

• MU Oct 68 calls (volume: 3940, open int: 8070, implied vol: ~67%, prev day implied vol: 46%).  2K traded in a single transaction. Co starting construction on memory fab in Idaho; expected to come online in phases starting in 2025, with DRAM production ramping over the second half of the decade. Co is expected to report earnings late December. 
• QCOM Oct 110 calls (volume: 3020, open int: 760, implied vol: ~43%, prev day implied vol: 35%). The Biden administration is expected to soon tighten chip tool restrictions against China. Co is confirmed to report earnings November 1 after the close.
• AVGO Oct 840 calls (volume: 1920, open int: 640, implied vol: ~37%, prev day implied vol: 34%). Co is expected to report earnings mid-November.
  

Bearish Put Activity:

• UPST Oct 25 puts (volume: 2610, open int: 410, implied vol: ~159%, prev day implied vol: 100%). Co is expected to report earnings early November.
• SIRI Nov 4 puts (volume: 10.4K, open int: 10, implied vol: ~91%, prev day implied vol: 88%). 2500 contracts traded in a single transaction. Co is confirmed to report earnings November 3 before the open.

Sentiment: The CBOE Put/Call ratio is currently: 1.30, VIX: (17.64, -0.85, -4.6%).
October 20 is options expiration -- the last day to trade October equity options.

Pandora (P) to be acquired by Sirius XM Radio (SIRI) for $3.5 billion ($10.14/share)

 

Pandora Media to be acquired by SiriusXM (SIRI) in all-stock transaction valued at approximately $3.5 bln, or implied price of $10.14/share 

Pursuant to the agreement, the owners of the outstanding shares in Pandora that SiriusXM does not currently own will receive a fixed exchange ratio of 1.44 newly issued SiriusXM shares for each share of Pandora they hold. Based on the 30-day volume-weighted average price of $7.04 per share of SiriusXM common stock, the implied price of Pandora common stock is $10.14 per share, representing a premium of 13.8% over a 30-day volume-weighted average price. The transaction is expected to be tax-free to Pandora stockholders. SiriusXM currently owns convertible preferred stock in Pandora that represents a stake of approximately 15% on an as-converted basis.

• The merger agreement provides for a "go-shop" provision under which Pandora and its Board of Directors may actively solicit, receive, evaluate and potentially enter negotiations with parties that offer alternative proposals following the execution date of the definitive agreement.
• SiriusXM reiterated its full-year 2018 guidance provided on July 25, 2018, with self-pay net subscriber additions of approximately 1.15 million; revenue over $5.7 billion; adjusted EBITDA of approximately $2.175 billion, and free cash flow of approximately $1.5 billion. Pandora reiterated its third quarter 2018 guidance provided on July 31, 2018, with revenue of $390 million to $405 million and Adjusted EBITDA of ($25) million to ($10) million.

** charts before announcement **

P 

 

SIRI 

 

=Sirius (SIRI) sinks after CRB raises royalty payment rate

Shares of Sirius XM Holdings (SIRI) sank 5.8% in very active trade Friday, after the company disclosed that it will have pay higher royalties to play music on its satellite radio programs. Volume ballooned to 74.2 million shares, compared with the full-day average of 16.3 million shares, and enough to make the stock the most actively trade on major U.S. exchanges, according to FactSet.

Sirius said in an SEC filing that the Copyright Royalty Board had determined that starting Jan. 1, 2018, the company will be required to pay a royalty of 15.5% of gross revenue through 2022, up from the 2017 rate of 11.0%. "We anticipate that the [CRB] decision will result in an increase in our aggregate royalty expense on an annual basis beginning in 2018," the company stated in the filing. "We are not yet able to estimate the impact on our financial statements, although the additional royalty expense could be material." The stock has now lost 9.0% since it closed at an 11 1/2-year high of $5.86 on July 31, 2017, but was still up 19.8% year to date, while the S&P 500 (SPX) has gained 19.6%.

Long trade : SIRI +8% (5/17)

• a. 5/18:  1, 4, 5, 6, 8, 10, 22, 26, 52, 58, 95, 97  /  vol. 32 M
• 5/19: 10, 26, 58, 95

=Sirius XM Radio (SIRI) reported earnings on Thur 27 April 2017 (b/o)

Sirius XM Radio reports EPS in-line, revs in-line; reaffirms FY17 guidance; acquires Automatic Labs:

• Reports Q1 (Mar) earnings of $0.04 per share, in-line with the Capital IQ Consensus of $0.04; revenues rose 7.7% year/year to $1.29 bln vs the $1.29 bln Capital IQ Consensus.
• The co also announced the acquisition of Automatic Labs Inc. (Automatic), a San Francisco-based provider of connected vehicle services for consumers and enterprises.
• Co reaffirms guidance for FY17, sees FY17 revs of $5.3 bln vs. $5.36 bln Capital IQ Consensus Estimate; Sees self-pay net subscriber additions of approximately 1.3 million, sees Adjusted EBITDA of approximately $2.025 billion, and Free cash flow of approximately $1.5 billion