11:15am (EST) Sorry for the late post folks.  I have been researching a couple of trades this morning and all of our other trades are in the green so I wanted to get the research done before posting.  Sirius XM (SIRI, $0.77, up $0.09) is up 12% this morning which isn’t really a big deal because it is a 75 cent stock.  I’m sure all of you have heard of this company and today’s action is pointing towards a noteworthy event next week. The water cooler talk this morning is that Sirius is going to debut an iPod-related docking station next week.  The company is promising a bevy of new accessories for the holiday shopping season and this would be a pretty big event for Sirius. Also, the shorts could be covering their positions today in anticipation of next week’s news.  Plus, the government’s “cash for clunkers” program could spur new subscriptions as Sirius satellite radios are offered with many new cars. I know we are an “options” newsletter/ blog but I just want to say that this may be a case to where buying the stock may be the better way to go.  The September 1 calls (QXIOA, $0.05, flat) are bidding 10 cents so that technically puts our break-even price at $1.10.  I have been watching the action in these calls all morning and I’m torn between suggesting the stock or the options.  Volume is heavy as over 2,200 contracts have traded thus far.  Open interest stands at 45,000.  Hard to believe there is this much action in a ”penny” stock but it is what it is. The December 1 calls (QXOLA, $0.15, flat) have traded over 4,000 contracts and may be the better play if we are going to do an option trade.  Either way, this could be a rebound story or a bunch of hot air.  Let’s go with the December 1’s and see what happens. I won’t be doing an update at 1pm but I will be back Sunday night with the Weekly Wrap. Rick@MomentumOptionsTrading.com]]>