Some people who have a lot of money think Verizon's phone company is not doing well and might lose value soon. They are buying special things called "options" that let them bet on this happening. Most of these big people are being negative about Verizon, but some are positive. This is important because it could mean something bad is going to happen with Verizon's phones or business in the future. Read from source...
- The title of the article is misleading and clickbait. It suggests that there is a hidden message or a secret behind Verizon Communications's options activity, but the content does not provide any evidence or explanation for such a claim. Instead, it simply reports on the sentiments of different traders without contextualizing them in the broader market conditions or company performance.
- The article relies heavily on vague and subjective terms like "bearish" and "bullish" to describe the options transactions, without explaining what they mean or how they are calculated. It also fails to provide any data or sources to back up these claims, making them seem arbitrary and unreliable.
- The article uses the word "usually" in a very casual way, implying that there is a causal relationship between options activity and future events, without providing any proof or examples of such cases. It also makes it sound like this is a rare and exceptional occurrence, rather than a normal part of the market dynamics.
- The article does not provide any context for the recent price movements of Verizon Communications's stock, which could be influencing the options activity. For example, it does not mention any news or events that might have affected the company's performance or outlook, nor does it compare its current valuation and growth prospects to its peers or historical levels.
- The article ends with a cliffhanger, suggesting that there is more to the story that will be revealed later. However, it does not indicate when or where this information will be available, creating a sense of frustration and dissatisfaction among the readers who are left hanging. It also implies that the options activity is somehow related to a bigger conspiracy or scandal, which is not supported by any evidence or logic.
1. Buy VZ at current price ($50.49) as a long-term investment, targeting a price of $65 by Q3 2025, based on expected growth in wireless and wireline services, 5G expansion, and cost savings from asset sales and restructuring. The estimated annualized return is 10%.
2. Sell the September 2024 $50 strike call for $1.60 per contract, generating an immediate income of 3.2% annually. This strategy involves selling the right to purchase VZ at $50 anytime before expiration in exchange for a premium payment. The risk is limited to the difference between the stock price and the strike price ($50 - $48.40) or $1.60 per share, which is also the breakeven point.
3. Sell the September 2024 $55 strike call for $2.20 per contract, generating an additional income of 4% annually. This strategy involves selling the right to purchase VZ at $55 anytime before expiration in exchange for a premium payment. The risk is limited to the difference between the stock price and the strike price ($55 - $52.80) or $2.20 per share, which is also the breakeven point.
4. Sell the September 2024 $60 strike call for $3.50 per contract, creating a third stream of income of 7% annually. This strategy involves selling the right to purchase VZ at $60 anytime before expiration in exchange for a premium payment. The risk is limited to the difference between the stock price and the strike price ($60 - $56.50) or $3.50 per share, which is also the breakeven point.
5. Monitor the options activity closely and adjust the strategies as needed in response to any changes in market conditions, news events, or regulatory developments that could affect VZ's performance or valuation. Some potential risks include increased competition, regulatory hurdles, litigation, cyberattacks, network outages, customer churn, and industry trends such as cord-cutting, 5G adoption, and IoT growth.