I wrote new puts on AT&T this morning.
music selection: “Badlands” — Bruce Springsteen
weigh-in: 216.4 +0.4 – Four consecutive weeks in the wrong direction.
My original put on AT&T expired worthless over the weekend. I wrote a new one at the money this morning. I sold T160429P00039000 for 1.09 a contract. The strike was eight cents in the money so there is only 1.01 of time value sold. The trade will be in force for 40 days and yields 23.63% annualized if it expires in the money. If the trade expires out of the money, it yields 25.50% annualized. The trade has 2.59% downside protection.
We are getting close to fully valued for T so if it runs away from me again, I think I’ll wait for better pricing before writing higher strike puts. It is a good company but a good company turns into a bad investment if bought too dearly.
Devour your prey raptors!