Posts: 583
Threads: 62
Joined: Sep 2013
Reputation:
16
T attractive price? Shares are ex dividend today, plus I guess some general concern over interest rate risk and revenue stream issues. Share price is down slightly over a $1 in the past week and a half. I don't hold T as a long term position, but do like it as a covered call play. With shares trading ex. dividend, IMO the shares give a pretty good chance of hitting $33.75 or so within the next couple of weeks. If so, I'll likely double my position and immediately sell six month calls against it.
Alex
Posts: 583
Threads: 62
Joined: Sep 2013
Reputation:
16
Didn't take T long to drop through the $33.75 level! Guess I'll hold off until AT&T's acquisition plans get more settled.
Alex
Posts: 583
Threads: 62
Joined: Sep 2013
Reputation:
16
T - won't make a Vodafone offer
From USA Today article:
"At the request of the U.K. takeover panel, AT&T confirms that it does not intend to make an offer for Vodafone," AT&T said in the statement.
I'm long 600 shares of T, but they are all covering $34 calls. This is purely a short term cash flow play for me. Dividends plus call contracts give six month cash flow of over 6% through July.
Alex
Posts: 583
Threads: 62
Joined: Sep 2013
Reputation:
16
Added 200 shares of T on today's dip. On the following bounce immediately sold October $33 calls for $1.32 (3.9% net). Over the period $1.35 (4%) in dividends should hit the pot. I think that the dividend yield will hold the price at least reasonably stable for the period. Gives a great chance for better than 10% annualized cash flow.
Alex
