SIRI | Sirius XM Holdings Inc. Stocks Trade Idea of the Week

SIRI Stocks Trade Idea

This week, Trade Ideas technology is signaling that a once high flying technology stock, which has been mired in a very long bottoming base, is showing some signs of life.  SIRI reporting earnings on 3/26 and the following day had an impressive gap-n-go breakout, accompanied by over 3 time’s normal option volume.  It is now trading at an 11 year high, and has finally comfortably cleared the very important $5.00 level.

image of options scanner with SIRI highlighted

The Trade of the Week in SIRI is live at the market open on Monday 7/31.

This can be setting up for a go-pause-go pattern, and a breach of the 2-day high could cause the roughly 18% of the shares in the float who are short, to rush to cover.  There is now a very strong support level at $5.50, but giving some wiggle-room, we will use a break of $5.45 as the stop.  We always say targets are subjective, so we are calling for a 3 to 1 reward/risk ratio.  With that ratio, our target will be set at $6.92

image of SIRI stocks trading chart

image of Trade Ideas banner

Footnote:  This is a table showing the maximum profit for all past 2017 Trades of the Week. Timing the top is impossible but this table shows how much alpha was possible when considering the exit of these positions. The trades outlined in red eventually hit their suggested stop prices, so you can see the importance of timing and harvesting profits along the way when you can, especially those that move above 10%.

image of trade ideas stocks trading results 2017*Assumptions
Targets are not absolute. Targets involve timing. Profits can and should be harvested along the way.
Risk to Reward ratio ideal is 1:3
Trades of the week that do not reach entry prices are not considered live and are expired at the end of the current week. (ORCL and JNPR)
TOW Rules: 20% Rule.  If a performance is up 10% and gives back 20%, take the 8 and run. (Profit Save, Trailing Stop).
Stocks that gap up over the entry price are considered up to the discretion of the buyer as to the entry price (WETF)
Happy investing!
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Founded in 2002, Trade Ideas software was created to be an edge for traders by accomplishing what no human can doówatch every trade of every stock and alert to profitable activity. TI Proís OddsMaker backtests and optimizes your strategies against the entire market, not just a basket of stocks. Donít spend hours researching, pouring over charts, or programming backtests. Get the Trade Ideas Advantage. Find. Test. Invest.

Trade Ideas

Founded in 2002, Trade Ideas software was created to be an edge for traders by accomplishing what no human can doówatch every trade of every stock and alert to profitable activity. TI Proís OddsMaker backtests and optimizes your strategies against the entire market, not just a basket of stocks. Donít spend hours researching, pouring over charts, or programming backtests. Get the Trade Ideas Advantage. Find. Test. Invest.

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