My written put in AT&T resulted in assignment of shares.

music selection:  “Breaking the Chains” — Dreamland

weigh-in:  219.2 +1.6 – I ate an entire pizza by myself in one setting…I’m weak.

Getting assigned with AT&T was always the plan.  I think the stock has huge upside from its fiber optic cable network as the Internet of Things takes off.  Now the plan is to write slightly out of the money covered calls to produce income while trying to capture upside price appreciation.  I get to keep the almost 5% dividend along the way.

Last Monday, I sold T160610C00040000 for 25 cents a share.  Against my cost basis of 39 a share, that has an annualized yield of 5.85%.  The trade will be in force for 40 days.  With any luck.  The stock will climb very slowly over the next couple of years allowing me to capture all the upside while collecting income.

Devour your prey raptors!

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Covered Call AT&T (T)

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3 thoughts on “Covered Call AT&T (T)

  • May 9, 2016 at 9:01 pm
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    I like your thinking on AT&T. I’m about to sell my first option and T is the plan. Mainly because I can afford it should I get assigned, but I also own it for dividend income and would be ok to own more (to sell more options on).

    Reply

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