Caught Short

I can’t be certain that the shorts are covering their short positions in AT&T. However, I feel that they are not faring quite as well as they might have expected. First, AT&T had pretty solid earnings in 1Q 0f 2015. They also hit a milestone when they logged a 1.02% postpaid churn. I would like to be able to bet that the short was not expecting that. Anyhow, the numbers were actually very solid and they matched the estimates with EPS at $0.63.

The investment community must have loved the numbers because the stock shot out the gate and never really looked back. It had a little retreat from the $34.40’s, but it settled back in the $34.20’s. This move seemed to be a long time coming. I purchased the last shares when the stock stumbled last week with the market. I spent all of my IRA contributions, but I wish I had more to put to work. Either way, I am happy to have made the trade.

I am starting to focus on my trading account again. I am going to be collecting my dividend payment from those shares, and I now have a total of 988 shares in that account. With the collection of the dividend, I will be up almost 15% in the past 6 months. If the stock moves higher tomorrow, I am selling in that account. My order has been in place for quite a while. I have a limit price of $34.55 set. I have been so busy in the past few days, so I have not been able to watch the stocks or adjust the orders. If I was not stuck in the rain all day yesterday, I would have adjusted the limit price to sell at the $34.40 range. I figure that a gain is a gain. Also, if I would have sold at that price, it would have dropped enough to buy back, and make another turn. So, in the scheme of things, even though the stock moved to the upside, there still was the ability to make money trading if I had time to put towards it.

Also, there is some fairly lucrative options available. If the price stabilizes, selling covered calls could definitely be a possibility. wpid-magnifying-glass-562570_1280.jpg

Well, we will see how it goes tomorrow. If the move is to the upside, I am out until it retreats. Good luck to all and….

Keep cranking,

Robert Pizzolato

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About dividenddreamer

Doing what I can to make the best of today and the most of tomorrow.
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