Mid Day Stock Options Trade July 21, 2009

I am watching Sirius Satellite Radio Stock as it hovers around 40 cents ($0.40) a share. I am looking at using the Buy/Write option strategy to purchase shares of Sirius XM Radio Inc. (SIRI) at 40 cents and immediately write the December 1 strike call options for 10 cents ($0.10) a share. This would lower my cost basis by 25%, and would give me upside to $1.00 a share by December options expiration. Sphere: Related Content