A huge put sale is apparently looking for Sirius XM Radio to hold current levels in coming weeks.
optionMONSTER systems detected the sale of 32,000 November 4 SIRI puts for the bid price of $0.07. This is clearly a new position, as the volume was more than 6 times the previous open interest at that strike.
The trader is looking for SIRI to hold above $4 in the next three weeks. If it does, he or she will keep the $0.07 credit as as profit.
This suggests that the trader doesn’t see much downside potential for the satellite-radio company. The put seller also takes on the risk of having to buy 3.2 million shares of SIRI if they fall below $4 by expiration in mid-November.
— Option Monster