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Strategies & Market Trends : Option Strategies

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To: Thehammer who wrote (1925)	3/5/2018 9:05:20 AM
From: robert b furman	Read Replies (1) of 2591

Hi Hammer, Here's a play I'm watching on T. The 2019 January 33's are almost selling for $2.00 = net purchase price of $31.00 (yields 6.45%). If you keep the premium and do not get the stock it yields $2.00 / 31.00 = 6.45% also. So if you have $33,000 in purchasing power you can get 6.45% on your money either way - that beats all the banks I know. The 35's are getting almost $2.75 net price of $32.75 yields 6.11%. Here the premium to net purchase price is $2.75 / $32.75 =8.52 %,but if put to you the price of the stock is a bit higher with a bit less yield. When T bought Direct TV ( 8/15) and was about to buy Time Warner (11/06/17) price hit lows of 30.97 and 32.55. The two lowest lows in 3 years. Both would be in the money and would give a good premium to net purchase price and if put to you provide a dividend that would yield to cost close to 7%. T is scheduled to go to court regarding the Time Warner acquisition vs the DOJ March 20th. If price dips, AS IT HAS IN THE PAST, we are two weeks away from a very good time to lever any spare cash you may have (by selling puts collateralized by cash in your account). This one only comes every year and a half or so. Lets see who can get the most premium!!! Weekly 3 year: screencast.com Best of trades!! Bob

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