Between the dividend payout yesterday and the market weakness, AT&T Stock moved lower which opened up excellent Put Selling opportunities once again today. AT&T Stock has continued to perform brilliantly for Put Selling but there are warning signs it may fall lower.
AT&T Stock Sell-Off
All the major telecoms were lower today with AT&T down 1.29%. The stock slid lower as T-Mobile announced an increase in their customer base by 1.6 million users in the last quarter. However they are also paying up to $350 per line to consumers to break their contract with bigger rivals to switch to T-Mobile. Meanwhile just two days before AT&T’s stock started falling as the company promised to pay a $200 credit to every T-Mobile customer who switched to AT&T and $250 for any T-Mobile customer who also traded in their phone.
The fear now is that an all-out price war may emerge for mobile subscribers which in the end will hurt everyone’s bottom line. With competition this stiff, all the telecoms declined.
The trade details for today’s trade in AT&T Stock are below. FullyInformed Members may read a detailed analysis of the stock outlook, the strategy being used as well as rescue strategies I may apply if needed to this trade.
Trade Details – T Stock at $33.58
Jan 9 2014 – (STO) Put Selling 5 naked puts 22FEB14 $33.00 call strike for $0.46
Trade Alert and Full Trade Outline of AT&T Stock
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. 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 and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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