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AT&T  
About The Company
Market Capitalization $166.3B
Revenue (FYR) $124.30B
EPS $3.22
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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By using this site, you agree to be bound by its terms of use. The full terms of use can be read here. If you do not agree to the terms of use, do not access or use this site.
Nothing presented is financial advice, trading advice or recommendations. Everything presented is the author's ideas only. The author accepts no liability for its use including errors and omissions. You alone are solely responsible for your own investing and trading. There are considerable risks involved in implementing any investment strategies and losses can be large. Trade at your own risk.

 
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  AT&T INC STOCK (T) - 2011
ONGOING EVALUATION & TRADE
The 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.
ALL
PORTFOLIOS
INDEX
U.S. STOCKS
RETIREMENT PORTFOLIO
CANADIAN STOCKS

 
CURRENT U.S.
STOCK PORTFOLIO
INDEX

AT+T
CLOROX
COCA COLA
INTEL CORPORATION
JOHNSON & JOHNSON
KRAFT FOODS
MCDONALDS
MERCK & COMPANY
MICROSOFT
NUCOR CORPORATION
PEPSICO
SPYDER ETF
VISA
EXXON MOBIL
YUM! BRANDS

 
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. I have set up a Paypal account for those who would like to donate. Thank you in advance. Remember, nothing on my site is financial advice. They are just my ideas and opinions. Investing is risky and losses can be large. Trade at your own risk. Read the terms of use
   
   
YEAR 1: 2011
Goal for 2011: 12%
Strategy: Sell Naked Puts Until Assigned
 
Capital Currently In Use 27019.50
Income Earned in 2011 3606.25
TOTAL INCOME EARNED TO DATE 3606.25
Total Of My Own Capital Required 23413.25
Number Of Shares if assigned 1000
Share Price Valuation
(Total Capital Required/Number of shares)
23.41
YEAR - 1:  2011
TRADE COMMENCED Jan 6 2011
GOAL FOR 2011: 12%

ONGOING STRATEGY - SELLING NAKED PUTS UNTIL ASSIGNED
STARTING CAPITAL: $70,000.00

* ACTIVE TRADES ARE HIGHLIGHTED IN YELLOW
Jan 6 2011 28.78 STO 25 Naked Puts Jan 28 @ .18 0.6 0.00   38.25     411.75 411.75
JAN 6 2011: I closed my 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 28.33 Expiry 25 Naked Puts Jan 28 expired                
Jan 31 11 27.30 STO 20 Naked Puts Feb 27 @ .72 2.6%     32.00     1408.00 1819.75
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 28.44 BTC 20 Naked Puts Feb 27 @ .09       32.00     (212.00) 1607.75
Feb 24 11 27.70 STO 20 Naked Puts Mar 27 @ .38       32.00     728.00 2335.75
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 expiry. 

Mar 7 11 28.00 BTC 20 Mar 27 Naked Puts @ .08       32.00     (192.00) 2143.75
    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 28.20 Sold 10 Naked Puts Sep 27 @ .34 1.1     19.50   27019.50 320.50 2464.25
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 over valued. Read the article.  
Sep 1 11 28.30 Sold 10 Naked Puts Oct 26 @ .50 1.8     19.50   26019.50 480.50 2944.75
Sep 16 11 28.94 Expiry: 10 Naked Puts Sep $27 expired                
Sep 19 11 28.37 Sold 10 Naked Puts Oct 26 @ .30 1.1     19.50   26019.50 280.50 3225.25
Oct 21 11 29.13 Options Expiry: 20 Oct $26 put options expired                
Nov 9 11 28.93 Sold 10 Naked Puts 17DEC11 $26 @ .18 0.69     19.50   26019.50 160.50 3385.75
Dec 16 11 28.85 Expiry 10 Naked Puts 17DEC11 expired                
Dec 16 11 28.85 Sold 10 Naked Puts 21 Jan 12 $27 @ .24 0.90     19.50   27019.50 220.50 3606.25

 

 

Disclaimer: There are considerable risks involved in all investment strategies. Trade at your own risk.
Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed or presented are financial advice, trading advice or recommendations. Fullyinformed.com is a private website. Everything presented and discussed are the author's ideas and opinions only.
By using this site, you agree to be bound by its terms of use. The full terms of use can be read here. If you do not agree to the terms of use, do not use this site. The author of fullyinformed.com assumes no liability for topics and ideas discussed, errors and omissions, ads and their content and external links. Any corporate insignia used are registered trademarks of their respective company or corporation and are being used for identification purposes only. All material copyrighted by FullyInformed.com. Reproduction in whole or in part prohibited. Copyright 2008

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