Sirius's Short Story

When a stock is down, and trading like the SDARS equities have been,
the “shorts” always seem to become a popular subject. <!--more-->People speak of
market manipulation, and seem to run off on a tangent that those that
are short are the source of all of the problems that has an equity on
the down side.

With this merger, there are many reasons to short.
While shorting equities is something that I personally am not prone to
do, I do understand the concept and the market. I simply make a choice
not to short very often. Specific to the merger, there is an arbitrage
play that potentially has a lot of people shorting Sirius (SIRI). The strategy
is to go long XM (XMSR) and short Sirius (this strategy requires that the
merger pass). If an investor were to do this, they will basically lock
in the arbitrage spread upon the merge.