Pandora Media Inc (P) has become the exclusive streaming partner for 'Serial' season two
Whether or not you think Adnan "did it" -- and he
definitely did -- smash-hit podcast "Serial" will be back for a second season. This time around, the program will have an even bigger platform on which to promote itself:
Pandora Media Inc (NYSE:P). As of today, the Internet radio company -- which boasts nearly 80 million monthly visitors -- has snagged
exclusive rights to broadcast the first season of "Serial," and will also serve as the exclusive streaming partner for season two.
The news has sent P shares 5% higher to trade at $12.08. Option traders have responded to the surge, too, with
buy-to-open activity transpiring at the out-of-the-money November 13 call. More than 6,200 contracts have been exchanged, making it the stock's most popular strike by far. By buying to open these calls, traders anticipate P will muscle its way above $13 by the close on Friday, Nov. 20, when front-month options expire.
Taking a step back, the equity's intraday call volume more than doubles put volume. This is business as usual, per P's
Schaeffer's put/call open interest ratio (SOIR) of 0.48, which rests below 99% of comparable readings from the past year. In other words, traders have been extremely call-focused, when looking at options with a shelf-life of three months or less.
Not everyone's on P's bullish bandwagon, though. For one, over half of covering analysts
rate the shares a "hold" or worse. For another, 13.2% of the stock's float is sold short, representing one week's worth of pent-up buying power, at typical volumes. If Pandora Media Inc (NYSE:P) can make a run at the 13 strike, this skepticism could start to unwind -- potentially leading to tailwinds.