T stock is a new addition to my US Portfolio for 2011. AT&T Stock symbol is T. AT&T is one of the largest telecommunications companies in the world. It still dominates in a market that is extremely competitive and very price conscious.
The strategy currently being used for T Stock is to sell puts slightly out of the money until I accept assignment on T Stock shares. At that time I will sell covered calls on AT&T Stock until I am exercised out of them. I will then repeat the cycle. If I accept assignment of T Stock shares I will be selling covered calls quarterly in order to also earn the dividend.
T Stock pays a substantial dividend which has been increased each year for more than 20 years. With a dividend yield of over 6% (as of Jan 6 2011) this company, based on its earnings, book value and future potential is, in my opinion undervalued.
Select this T Stock link to review AT&T Investor Relations
| review 2012 T Stock Trades review USA Stock Portfolio for 2011 T Stock Trades For 2011 (AT&T Stock)Current T Stock Status – Year 1T Stock Goal for 2011: 12% |
| Date | Stock At Time Of Trade | Action Taken (All Figures Are US Dollars) ACTIVE TRADES ARE HIGHLIGHTED | Comm. | Shares Held | Capital In Use | Gain/Loss | Total Income |
| Jan 6 2011 | 28.78 | Sold 25 Naked Puts AT&T STOCK Jan $28 @ .18 (Status: Expired) | 38.25 | 411.75 | 411.75 | ||
| Jan 21 2011 | 28.33 | Options Expiry – 25 Naked Puts Jan $28 expired | |||||
| Jan 31 2011 | 27.30 | Sold 20 Naked Puts T Stock Feb $27 @ .72 (Status: Bought To Close for .09) | 32.00 | 1408.00 | 1918.75 | ||
| Feb 11 2011 | 28.44 | Buy To Close 20 Naked Puts Feb $27 @ .09 | 32.00 | (212.00) | 1607.75 | ||
| Feb 24 2011 | 27.70 | Sold 20 Naked Puts AT&T Stock Mar $27 @ .38 (Status: Bought To Close for .08) | 32.00 | 728.00 | 2335.75 | ||
| Mar 7 2011 | 28.00 | Buy To Close 20 Naked Puts AT&T Stock Mar $27 @ .08 | 32.00 | (192.00) | 2143.75 | ||
| Aug 31 2011 | 28.20 | Sold 10 Naked Puts Sep$27 @ .34 (Status: Expired) | 19.50 | 320.50 | 2464.25 | ||
| Sep 1 2011 | 28.30 | Sold 10 Naked Puts Oct $26 @ .50 (Status: Expired) | 19.50 | 480.50 | 2944.75 | ||
| Sep 16 2011 | 28.94 | Options Expiry 10 Naked Puts Sep $27 expired | |||||
| Sep 19 2011 | 28.37 | Sold 10 Naked Puts T Stock Oct $26 @ .30 (Status: Expired) | 19.50 | 280.50 | 3225.25 | ||
| Oct 21 2011 | 29.13 | Options Expiry 20 Naked Puts Oct $26 expired (Status: Expired) | |||||
| Nov 9 2011 | 28.93 | Sold 10 Naked Puts AT&T Stock Dec $26 @ .18 (Status: Expired) | 19.50 | 160.50 | 3385.75 | ||
| Dec 16 2011 | 28.85 | Options Expiry 10 Naked Puts Dec $26 expired | |||||
| Dec 16 2011 | 28.85 | Sold 10 Naked Puts 21JAN12 T Stock $27 @ .24 (Status: Expired) | 19.50 | 220.50 | 3606.25 | ||
| END OF 2011 – 13.3% Return | |||||||
T Stock Conclusion For 2011With the end of the year my return has been 13.3% based on the amount of capital at risk at the end of 2011. If each trades was annualized the return would be much higher. That’s the problem with option selling, calculating a return. Instead I prefer to calculate the overall portfolio return. My US Portfolio for 2011 returned 26.8%, thanks in part to the income earned from T Stock put selling. I think this is a much better way to arrive at an overall return for option trades.I believe T Stock remains undervalued and I will continue put selling on T Stock for 2012. | |||||||