Communication Services
T
AT&T Inc.
High dividend income from AT&T (T) with covered calls and cash secured puts. Accessible price with strong yield for income investors.
Monthly Premium1.5-2.5%
Annualized Return18-30%
Stock Price$20-24
IV RankLow-Moderate (25-40)
Options LiquidityExcellent
Dividend Yield5.5%
Why T for Covered Calls & Cash Secured Puts?
T offers one of the highest dividend yields among large caps combined with accessible share price (~$2,200 for 100 shares). Premium plus dividend creates excellent income for retirees.
Example Covered Call Trade
TCovered Call
Strike Price$24 (6% OTM)
Expiration30 days
Premium$0.45 per share
Return If Flat2.0% ($45)
Return If Called8.0% ($180) + dividend
Keep Probability72% keep shares
Recommended Strategy for T
Conservative calls 4-6% OTM to enhance the already strong dividend. T is ideal for pure income investors.
Risks to Consider
- Debt load concerns
- Wireless competition
- Cord-cutting impact
- Limited growth potential
- 5G investment needs
Analyze T Covered Calls Now
Use our free calculator to find the optimal strike price for your goals
Open Calculator