Option Update: XM Satellite Radio (XMSR) volatility elevated as SIRI deal vote nears

Posted Jul 18th 2008 9:32AM by Paul Foster
Filed under: XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Options

XM Satellite Radio (NASDAQ: XMSR) closed at $8.44 Thursday.

XMSR and Sirius (NASDAQ: SIRI) announced a merger of equals in February of 2007. XMSR shareholders will receive 4.6 SIRI shares for each XMSR share.

Jonathan Adelstein, an FCC commissioner, said he'd vote to approve a merger between XMSR and SIRI if they cap prices and increase public interest and minority programming. The FCC Chairman Kevin Martin recommended approval of the SIRI-XMSR merger this spring. Adelstein would be the third of five commissioners to support the deal; a majority is needed.

XMSR August option implied volatility of 133 is above its 26-week average of 84 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Tags: inthenews, option implied volatility, OptionImpliedVolatility, siri, sirius, xm satellite, XmSatellite, xmsr