Sold SIRI Aug 15 2025 $22 Put (51 DTE)
Quiet Premium from a Cash Machine: Using Put Income to Build Into SiriusXM
On June 25, I sold the SIRI Aug 15 $22 put for $1.15. This is my first position in SIRI.
Here’s the full setup:
Entry
Sold SIRI Aug 15 2025 $22 Put (51 DTE)
SIRI250815P00022000
Opened: June 25, 2025
Entry Price: $1.15
Exit Target: $0.15 (To Close)
Underlying: $22.48
Buffer: 2.13%
Breakeven: $20.85
Max Risk: $2,200.00
Return: 4.55%
Prob. of Win: ~59%
Profit Target: $100.00Trade Thesis
I just opened a new position in SiriusXM — selling the Aug 15 $22 put for $1.15 with 51 days to expiration. It’s not a flashy trade, but that’s the point. At just under 2% out of the money, this put lets us quietly collect $100 of premium while anchoring our basis below $21 on a name that’s trading at ~7× forward earnings and still returning nearly $700 million to shareholders this year.
This is a classic collateral compounding setup. We’re not betting on a turnaround. We’re collecting income while the case builds underneath. Subscriber churn has started to stabilize. EV integration is picking up speed (Tesla and Rivian both support SiriusXM streaming now). And the company is finally showing discipline on costs — targeting $200 million in additional savings this year, on top of the $350 million already achieved.
Most importantly, this is still a cash flow machine. Free cash flow is expected to hit $1.15 billion in 2025, with a dividend yield pushing 4.6% — all while they actively buy back shares and pay down debt. If the $22 level holds, we keep the full premium. If not, we’re happy to own the stock below breakeven and start building a long-term position. Either way, the math works in our favor.
The delta on this put is 0.41 — so the odds are a coin flip in theory. But if subscriber trends continue improving and new pricing tiers bring in fresh demand (the ad-supported tier launches later this year), we like our chances. We’re not trying to time a bottom. We’re just building our exposure one layer at a time — and this is where we start.