Market Capitalization $166.3B
Revenue (FYR) $124.30B
P/E Ratio 8.7x
Shares Outstanding 5.9 B
Dividend Yield 6.16% (Jan 2011)
AT&T Inc. (AT&T)
provides telecommunications services in the United States
and the world. It offers services and products to consumers
in the United States and services and products to businesses
and other providers of telecommunications services
worldwide. The Company operates in four segments: Wireless,
which provides both wireless voice and data communications
services across the United States and, through roaming
agreements, in a substantial number of foreign countries;
wireline, which provides primarily landline voice and data
communication services, AT&T U-Verse television, high-speed
broadband and voice services (U-Verse) and managed
networking to business customers.; advertising solutions,
which publishes Yellow and White Pages directories and sell
directory advertising and Internet-based advertising and
local search, and other, which provides results from
Sterling Commerce, Inc.
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Nothing presented is financial advice, trading advice or
recommendations. Everything presented is the author's ideas
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errors and omissions. You alone are solely responsible for your
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large. Trade at your own risk.
STOCK (T) -
current strategy is selling naked puts until I either accept
assignment OR get assigned shares. Then I will turn to
covered calls. With a dividend yield of
over 5% (as of Jan 6 2011) this company, based on its
earnings, book value and future potential is (in my
opinion) undervalued. I do not plan to hold naked puts until
they expire. Should a decent profit appear in the trade I
will close early and look for other opportunities.
Should you find my strategy and ongoing evaluation of
this trade of value I hope you will consider a tip
for the time I spend detailing out this trade.
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They are just my ideas and opinions. Investing is risky and losses can be large. Trade
at your own risk.
YEAR 1: 2011 Goal for 2011: 12%
Strategy: Sell Naked Puts Until Assigned
Capital Currently In Use
Income Earned in 2011
TOTAL INCOME EARNED
Total Of My Own Capital
Number Of Shares if
Share Price Valuation
(Total Capital Required/Number of shares)
YEAR - 1:
TRADE COMMENCED Jan 6 2011
GOAL FOR 2011:
- SELLING NAKED PUTS UNTIL ASSIGNED
STARTING CAPITAL: $70,000.00
* ACTIVE TRADES ARE HIGHLIGHTED
Jan 6 2011
STO 25 Naked Puts Jan 28 @ .18
JAN 6 2011: I closed
position in MERCK and transferred the 70,000 to AT&T for the
next two weeks. The $28 strike has reasonable support for
this two week period. Today T paid it's dividend and the
stock pulled back hard pushing to the lower bollinger and
creating a great opportunity to sell the $28 strike for two
weeks of a little more than 1/2 a percent return. Add this
to the Merck trade and the return is better than 1% for a
couple of weeks work.
Looking at the 1 year chart AT&T has a lot of support at the
$26.00 strike and fair support at $28.00. 2010 looks like a
rather lackluster year for AT&T but it would have been a
good year for naked put sellers. A nice sideways stock could
have provided decent monthly returns.
Here is the 3 month chart and the support at $28.00 is more
obvious. Today's pullback pushed the stock to the lower
bollinger band and turned MACD to the downside. While this
could mark a downside trend, my strategy is to sell the $28
strike for 2 weeks, or less if the premium vanishes from the
$28 strike, or should the stock end up below $28.00 then I
will buy to close my naked puts and roll them out to Feb.
With good support at 27.50, I think $28.00 is a good choice
for two weeks exposure to AT&T.
Jan 21 11
Expiry 25 Naked Puts Jan 28 expired
Jan 31 11
STO 20 Naked Puts Feb 27 @ .72
Jan 31 2011: The stock has a nice sell
off yesterday and today it is now bouncing just below my
support point of $27.50. I have taken advantage of the move
lower and sold the Feb $27.00. I do not plan to hold this to
expiry unless necessary.
Feb 11 11
BTC 20 Naked Puts Feb 27 @ .09
Feb 24 11
STO 20 Naked Puts Mar 27 @ .38
Feb 24 2011: The stock has moved back
towards my support level of $27.50 and is now touching the
lower bollinger. I could wait until tomorrow but with the
move lower today premiums moved up and I captured more than
1%. Again I do not plan to hold these puts until
Mar 7 11
BTC 20 Mar 27 Naked Puts @ .08
Trade on hold as I believe the stock
is overvalued. I will wait for the stock to pull back to the
$28.00 range again.
Aug 31 11
Sold 10 Naked Puts Sep 27 @ .34
Aug 31 2011 & Sep 1 2011 : The news by the US Justice
Department's move to block AT&T's planned acusition of
T-Mobile USA operations has hammered the stock and provided
an excellent put selling opportunity.
In this article I discuss the decision to sell two sets
of puts and why it is never worth chasing stocks that become
Read the article.