AT&T: Generating Option Premiums

Summary:

  • AT&T is a high-yield investment with a 5.74% dividend yield, which can be attractive to income-investors.
  • Despite past mistakes, AT&T is seen as a defensive stock with steady cash flows and potential for earnings growth that could see dividend increases in the future.
  • We take a look at a recent put selling trade that expired worthless, allowing us to pocket the option premium and look toward further ideas moving forward.

AT&T Store New York City

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Written by Nick Ackerman

AT&T (NYSE:T) is a high-yield investment choice thanks to its 5.74% dividend yield. This telecom giant has made several mistakes over the years, but they seem to be focusing back on their core business and righting


Analyst’s Disclosure: I/we have a beneficial long position in the shares of T either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


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