Market Overview

Dan Nathan's AT&T Trade

Related T
Barron's Picks And Pans: Allstate, CBS, Owens-Illinois, 3M And More
Telecom Stock Roundup: Verizon 5G Ready To Launch, T-Mobile-Ericsson Deal And More
BCE: An Undervalued Dividend Growth Story With A 5.6% Yield And 14% Upside (Seeking Alpha)

Speaking on CNBC's "Options Action," Dan Nathan suggested investors with a long position in AT&T Inc. (NYSE: T) should consider a covered call strategy.

Nathan wants to sell the October 39 call for 38 cents against a long stock position. With the sale of the stock, he can increase his yield for additional 1 percent in just two months, which offers some downside protection. His selling price is capped at $39.38, or 5.39 percent above the current stock price.

Posted-In: CNBC Dan Nathan Options ActionAnalyst Color Options Markets Media


Related Articles (T)

View Comments and Join the Discussion!

Cryptocurrency Mining: What It Is, How It Works And Who's Making Money Off It

Ex-GE CEO Immelt Could Be Heading To Silicon Valley To Run Uber, Report Says