I’m listing this paper trade for learning purposes. Today is Ex-Day for AT&T (T) and the Pay Date is 2/1/22. This means if you buy the stock today and hold until Feb 2nd you will capture the dividend. The Dividend is 52¢.
I don’t have time to explain my thoughts right now but I will be writing about this trade tomorrow.
Paper Trade
Buy 1000 Shares T @ $26.20
Sell to Open 10 T 2/11/22 $27.00 C @ 50¢ (+$500)
This is a paper trade because I don’t have the money in my account to make it until after the close and it will be too late to buy the stock and capture the dividend. This would be a Grasshopper Trade if you buy 100 shares.
Successful trading,
Steve
The Options Coach