UPDATE:
MARCH 5, 2015
I now have in my trading strategy 983 shares of T. The share level has steadily increased since I started buying and selling shares with the strategy. Who knows where the stock is heading from here. However, I have put in a sell order if the stock moves to the upside.
Looking at the calls has given me a little optimism as far as income potential for the month. At the moment, the APR 10 $34.50 calls are paying 32 cents. If I add in the 47 cents for the dividend and the 31 cents profit from selling my ($34.19) shares for $34.50, I will be able to net a total of about $1.10 per share in 37 days. That would be a 3.2% gain in 37 days.
3.2% is not a bad return for a month and a few days if the trade works. I just have to decide whether I want to be ties up for that length of time. If the stock were to head south, I will be holding regardless and end up only collecting the dividend by April 10 only. There are many potential outcomes, however, if I made the sale of the call, I would get a nice premium and also collect the dividend and maybe get a nice profit in the end.
I have a few things to consider before I make the final decision to do it, and at the moment, I am leaving my options open.
Keep cranking,
Robert the DividendDreamer
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Well, I had a plan to pick up some GE to trade, however, things were not going like I wanted, so I went with T. One thing that I have noticed over the years is that stocks go up, and they go down. It is a fact of life. My plan to buy GE might have worked out in the next few days, however, in the interim, I bought 964 shares of T at $34.35. T ended up trading at a price that is right where I bought it before the last successful trade. This represented a 46 cent reduction in the price that I sold the shares for on last Friday.
Who knows where the price will go from here or whether this is a current bottom. However, in order to profit, I need to initiate a position at some point and go with it. Now, I am going to potentially sell the covered calls on Feb 35 contracts tomorrow if the numbers are right.
I have the shares purchased at a price that I am happy with. If I can generate a little income in the process, that would be icing on the cake. We will see how things go tomorrow.
Maybe, just maybe, I might get lucky and see a nice profit in T while I wait for GE to turn south. It could happen. But, in the meantime, I am staying flexible and going where I think the best chance for a gain exists.
Keep cranking,
Robert the DividendDreamer
DividendDreamer 
As you stated flexibility is key. Sometimes our best laid plans never come to fruition as Mr. Market has other ideas for our money. T is still a solid buy and with some covered call action you can juice returns further. Thanks for sharing.
I am working in my plan as I type. I have my limit order in for T for tomorrow. I only use limit orders and know my maximum in before I ever walk into a trade. For instance, last week, T hit $34.37 early on. Since my cash was not settled, I did not want to make a purchase. However, if I did, it would have been right at where I purchased the day before. I would rather wait a few days and let it possibly hit at the open on a down day. It has worked well for me in the past. Then, if it hits and bounces a bit, I can sell and book the profit.
We will see how it goes. Thanks for stopping by. I will definitely let you know how it goes.
Keep cranking,
Robert the DividendDreamer
Being flexible will get you far in life. Your approach sounds quite interesting for sure. T is a solid buy however you look at it.
Yes, T seems quite the dividend king. I am hoping to keep the strategy rolling, yet if it heads south, I have a nice dividend to look forward to collecting.
Thanks for stopping by.
Keep cranking,
Robert the DividendDreamer