Buying a call is a pure bullish directional play. Since you wern't really sure a spread would have hedged your bet. Selling the DEC 5 creating a calendar is a possibility. The problem with cheap stocks is it is hard to do any meaningful option play other than straight directional put or call. At this point you might just want to cut you loss or pare down the # of contracts. When any directional play goes against you right away you are better off closing it. Remember Theta is your enemy and the longer you wait the more you will lose. no opinion on the stock..GL
profit margins are definately falling . . . my friend got a satellite radio few years back, paid about $1500. Now I hear they have to offer them as a basic option in new cars. Don't know what they retail for.
I own SIRI @ 6.10 and I doubt that it will see that price any time soon. I liked their model and management. My father used to work with Mel Karmazin and he is a savey businessman and a smart guy which was initially what attracted me to the company. I do think that they overpaid for Stern and that has hurt them as well as less than stellar subscribership. I don't think they are a bad company but I see the stock sinking deeper and deeper into a hole which will be difficult to get out of. I've considered cutting my losses but I'm going to just hold it and wait to see what, if anything, their new satellite TV does for the company.
profit margins? what profits? this s.o.b has been riddled with debts since the ipo and they keep increasin' qt to qt. utter trash company