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Mike Khouw Presents An AT&T Trade Going Into Earnings

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On CNBC's "Options Action," Mike Khouw suggested that investors should consider a covered call strategy in AT&T Inc (NYSE: T) going into earnings next week. The company is scheduled to report earnings on Thursday.

Khouw wants to buy the stock and sell the June $31 call for $0.50. The premium is around 1.7% of the underlying price and the call option expires before the ex-dividend date, said Khouw. He sees AT&T as a good stock for a covered call strategy because it most likely won't take off and the premium is a way to enhance the yield.

 

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Posted-In: CNBC Mike Khouw Options ActionOptions Markets Media

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