(02-19-2019, 09:28 AM)crimsonghost747 Wrote:(02-19-2019, 09:04 AM)fenders53 Wrote: T-On Jan 30 sold Mar 15 Strike 29 puts at .72. Probably fairly near the money based on the premium of 1.65% monthly income. Moderate risk option IMO. I'm not convinced T has found a bottom yet.
Again I'm not too sure what your strategy is with T, are you planning on keeping it or not? If you can get in at $29 then I'd say it looks good for both long and short term.
As a pure trading strategy I've been selling covered calls with T, starting from between $29.50 and $30.00 and then selling either the first or second out of money call. Premium has been around 1% per week plus whatever you manage to make on the price appreciation.
Don't follow this one too close or you'll get a headache. I have quite a few shares of T. Some sit there long, and when it runs I have some potentially up for sale while grabbing some extra income along the way. On most every hard dip I throw up an offer for shares via put. This one is hybrid long investment / swing trade. Never any attempt to day trade it. The market gets a vote and adjusts my share balance a couple hundred shares from time to time. T is not a DGI stock to me, just a high yielder.
To answer your question in a little more detail. I desire to maintain a T share balance of about 300-400 shares (and collect the dividend). $12K is a full position for me. I'm mostly OK with 600 T shares but I am looking to sell a few and a small profit is OK. I haven't been exercised much because I have played the swings pretty well. If I find myself much below 300 shares you will see me sell puts extremely close to in the money with a couple week expiration, because I desire to be long and real soon. But I want that put sale premium. As Kerim said, it's just a no brainer to enter this way. T offers weekly otions so it is MUCH easier to navigate than a Ute that only sells quarterlies. (i.e. XEL) XEL is one of my favorites and tough to play the option game with, but I find a way that makes some sense.