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.
Terms
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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.
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.
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.
