This article is about some big people who have a lot of money and they think AT&T, a phone company, will do well. They bought something called options, which give them the right to buy or sell shares of AT&T in the future. Most of these big people are bullish, meaning they think AT&T's price will go up. Some other people don't agree and think AT&T's price will go down. These trades can help us guess what might happen to AT&T's price in the future. Read from source...
1. The title is misleading and sensationalized. It implies that there is a surge in options activity for AT&T that deserves special attention from investors and traders. However, the article does not provide any evidence or data to support this claim. There could be many reasons why some big-money traders are buying or selling options on AT&T, such as hedging, arbitrage, speculation, etc. The author should have been more specific and accurate in describing the nature and magnitude of the surge in options activity.
2. The article relies heavily on anecdotal evidence and personal opinions to make its case. For example, the author claims that "when something this big happens with T, it often means somebody knows something is about to happen." This statement is based on a vague and subjective interpretation of the options history data, rather than a rigorous analysis of the underlying factors and trends affecting AT&T's stock price and option trading volume. The author should have provided more concrete and objective evidence to support his or her assertions.
3. The article does not explain how it tracks and monitors the options history data, nor does it disclose any potential conflicts of interest or biases that may influence its findings. For example, the author mentions that he or she uses Benzinga's options scanner to spot uncommon options trades for AT&T, but does not provide any details on how this tool works, what criteria it uses to identify unusual options activity, or how often it updates its data. The author should have been more transparent and credible in presenting his or her methods and sources of information.
1. Buy AT&T shares at current market price and hold until the end of January 2024, as there is a high probability that the stock will appreciate in value due to the bullish sentiment from large institutional or wealthy individual investors who have made uncommon options trades for T, indicating insider knowledge or information.
2. Sell AT&T put options with a strike price of $30 and an expiration date of January 28, 2024, as this will generate income from the premium received and limit downside risk in case the stock declines below $30. The probability of AT&T reaching this price level by the end of January 2024 is low, given the bullish sentiment and options activity.
3. Buy AT&T call options with a strike price of $38 and an expiration date of January 28, 2024, as this will benefit from the upside potential in case the stock rallies above $38 by the end of the month. The probability of AT&T reaching this price level is high, given the bullish sentiment and options activity.
4. Monitor the news and earnings reports for AT&T during January 2024, as there may be catalysts that could trigger a significant move in the stock price. If the company announces strong results or positive developments, the stock may surge above $38 and the call options will yield substantial gains. On the other hand, if the company disappoints or faces negative headwinds, the stock may drop below $30 and the put options will provide a buffer against losses.
5. Adjust the position size and strike prices of the options as needed, based on the changing market conditions and your own risk tolerance and investment objectives. This will allow you to take advantage of the best opportunities in the options market and manage your exposure to AT&T.