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Dan Nathan's AT&T Trade

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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


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