 | |||||
| DISCLAIMER: This stock comparison is 100% for entertainment. I'm not recommending these stocks as a purchase. The research jump links in this blog post are ones that I use to start my stock investing research. Always do your own due diligence and never risk more money then you are willing to lose. Think of it like this blog post as seeing the world thru my eyes. | |||||
| COVERED CALL SHOWDOWN! - WHICH STOCK WOULD I PURCHASE TO WRITE A COVERED CALL | |||||
| AT&T Inc. | |||||
 | T | vs | VZ |  | |
| Verizon Communications Inc. | |||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| In this 'Stock Showdown' I'm highlighting two companies that are household names and have products people use around the world. These 2 companies are a customer base that provide a steady cash flow business and they pay its investors ~5% annually ... we've done these 2 companies before but with the recent downturn in the markets its a good time to re-visit them as share prices have fallen. | |||||
| NOTE - AT THE TIME OF THIS POSTING, BOTH COMPANIES STOCK PRICES BELOW | |||||
| T | VZ | ||||
| $19.07 | $48.46 | ||||
| AT&T Inc. | Verizon Communications Inc. | ||||
| Just in case you didn't know ... here's some basic company information about what they do. | |||||
| AT&T Inc. provides telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, and carrying cases and hands-free devices through its own company-owned stores, agents, and third-party retail stores. It also provides data, voice, security, cloud solutions, outsourcing, and managed and professional services, as well as customer premises equipment for multinational corporations, small and mid-sized businesses ... | Verizon Communications Inc., through its subsidiaries, offers communications, technology, information, and entertainment products and services to consumers, businesses, and governmental entities worldwide. Its Consumer segment provides postpaid and prepaid service plans; internet access on notebook computers and tablets; wireless equipment, including smartphones and other handsets; and wireless-enabled internet devices, such as tablets, and other wireless-enabled connected devices comprising smart watches. It also provides residential fixed connectivity solutions, such as ... | ||||
| Yahoo Summary-T | Yahoo Summary-VZ | ||||
| #1 - The Golden Rules of Covered Call Writing! | |||||
| The Golden Rules of Covered Call Writing are subjective ... the basic idea is to avoid as much risk as possible when determining a new stock purchase for a Covered Call Write ... we can not avoid risk entirely but using certain rules or guidelines will help use reduce that risk during the timeframe we use the stock for selling premium. I've included the most popular rules or guidelines below which include: avoid a company's earnings report, is the company apart of the S&P 500 or Dow Jones?. Does the company have a dividend? Does the company have same store sales reports? Do you want to own the stock? > This list isn't the end all be all list but a starter list for your research and lowering your risk ... but again, we can not avoid risk . | |||||
| AT&T Inc. | Verizon Communications Inc. | ||||
| S&P 500? | OPTIONS? | DIVIDEND? | S&P 500? | OPTIONS? | DIVIDEND? |
 | | | | | |
| Confirm | Option Chain-T | Verify-T | Confirm | Option Chain-VZ | Verify-VZ |
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| Both of these companies are large S&P type companies ... they have weekly options and they pay very nice dividends ... I'm a fan of VZ dividend as I've been a shareholder for years and basically its a rock and really should be considered more a utility stock v a tech stock ... Although, T's dividend is just as good | |||||
| #2 - What story is the chart telling us? | |||||
| When buying stocks to Write Covered Calls the prime objective is for the stock to trade sideways to higher ... selling premium traders will purchase a stock and sell the Out of the Money strike to collect both the premium and the stock appreciation. I always like to look at a chart and ask the question "what story is this chart telling me?" ... if its trending higher, this is good. If its trending lower, well, I really need to do my research if I'm going to invest in a company that its stock is trending lower. | |||||
| See Support-T | See Support-VZ | ||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| VZ has been absolutely kicked recently and its probably because they've lost some customers where T has almost triple what VZ has lost ... T aggressive ad campaign is clearly working right now ... but if you are a buy low person ... VZ is offering a nice buy low setup. | |||||
| #3 - What are "THEY" saying? | |||||
| I'm not an expert when it comes to whether a stock is undervalued or overvalued or if its a Buy or a Sell ... so I use some great websites to 'paint a picture' for me. Some will have a stock as a Buy and another will have it as a Sell ... so I usually have 3 or 4 different sources to help me. | |||||
| AT&T Inc. | Verizon Communications Inc. | ||||
| Zacks | Yahoo Prem | AmBull | Zacks | Yahoo Prem | AmBull |
| SELL | FAIRVALUED | STAY IN CASH | HOLD | FAIRVALUED | STAY SHORT |
| Corfirm Rating - T | Yahoo Summary-T | Trending? -AZN | Corfirm Rating - VZ | Yahoo Summary-VZ | Trending? -VZ |
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| Surprising, T has a Zacks graded SELL ... but otherwise it seems trading at Fairvalue like VZ is ... the markets being down I can understand why were getting these summaries on these stocks as of today. | |||||
| #4 - SHOW ME THE MONEY! | |||||
| Another great visual when quickly trying to determine if this/these are companies we want to own ... remember, we have to own these companies and if the picture isn't telling us a clear picture of a companies prospects then I have to make sure I really do my homework. | |||||
 |  | ||||
| Yahoo Summary-T | Yahoo Summary-VZ | ||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| VZ is very strong here as they are a larger company ... I can see nothing here that would make me invest in one of the other ... both seem to have raising costs as pricing is being cut and weaker margins with other companies in this sector battling for the krums. | |||||
| #5 - What kind of Covered Call profits can we make? | |||||
| Giving someone the right but not the obligation to take your shares can be very profitable if done correctly ... typically most Covered Call writers will try to make 3% Cash on Cash profit in a 30 day period. Mastering this skill of selling premium can increase your annual returns vs a buy and hold investment strategy. Below is a (1) deviation Out of the Money Covered Call that one might do if they sell premium. | |||||
| Looking at a 30 day window using (3) deviationS Out of the Money | |||||
| THESE ARE NOT REAL TIME! CLICK LINK BELOW FOR THAT | POSTED > | 4/28/2022 | |||
T | Current Price | Strike Price | LAST TRADE | 30 day return | Expiration |
| $19.07 | $19.50 | $0.06 | 2.57% | 8/27/2021 | |
| $19.07 | $20.00 | $0.02 | 4.98% | 8/27/2021 | |
| $19.07 | $20.50 | $0.01 | 7.55% | 8/27/2021 | |
| THIS IS NOT THE BID OR MID | |||||
| Check this stocks options here > | https://finance.yahoo.com/quote/T/options?p=T | ||||
| THESE ARE NOT REAL TIME! CLICK LINK BELOW FOR THAT | |||||
VZ | Current Price | Strike Price | LAST TRADE | 30 day return | Expiration |
| $48.46 | $49.00 | $0.22 | 1.57% | 8/27/2021 | |
| $48.46 | $49.50 | $0.11 | 2.37% | 8/27/2021 | |
| $48.46 | $50.00 | $0.05 | 3.28% | 8/27/2021 | |
| THIS IS NOT THE BID OR MID | |||||
| Check this stocks options here > | https://finance.yahoo.com/quote/VZ/options?p=VZ | ||||
| Seeing the World Thru my Eyes - the Straight Talk | |||||
| With the stocks being low implied volatility stocks you’re not gonna get that much for a 30 day Covered Call however I do like T's $20 strike, 4.98% CCW trade idea. | |||||
| #7 - "HURRY HURRY, READ ALL ABOUT IT!" | |||||
| The internet has so many resources for good information on companies ... whether its news, events or just some blogger with a great perspective on a company's prospects ... I love just glancing at the news feeds to get a feel for what's going on with a company I'm researching ... below are some helpful jump links I use. Recent article worth reading https://www.fool.com/investing/2022/04/28/better-buy-att-vs-verizon/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article | |||||
| Seeking Alpha | DivChannel | Seeking Alpha | DivChannel | ||
| Alpha Articles Search-T | Verify-T | Alpha Articles Search-VZ | Verify-VZ | ||
| MY WINNER IS!!! | |||||
 | T | vs | VZ | ||
| SCORE | SCORE | ||||
| 5 | 4 | ||||
| Seeing the World Thru my Eyes - the Straight Talk Recap! | |||||
| AT&T WINS! With the recent merger being completed and the current low share price and the recent major uptick in business as compared to VZ, T seems positioned for a better rest of 2022 then VZ ... and the $19 share price allows me to get involved and not feel like my up fronting much capital for a CCW trade ... I own VZ and will not be selling ... but T isn't shabby and I feel this comparison today opens my eyes to a possible new trade idea. | |||||
| The BONUS Deeper Dive! | |||||
| #8 - More number that help us Up Our Game! | |||||
| I'm not an expert when it comes to whether a stock is undervalued or overvalued or if its a Buy or a Sell ... so I use some great websites to 'paint a picture' for me. Some will have a stock as a Buy and another will have it as a Sell ... so I usually have 3 or 4 different sources to help me. | |||||
| FFTY | ST50 | S&P 500 | FFTY | ST50 | S&P 500 |
| - | - |  | - | - | |
| Does either of these companies have Earnings Report (next 30 days) | |||||
| June 18, 2021 | - | July 18, 2021 | |||
| ~ | Jul 21, 2022 - Jul 21, 2022 | ~ | Jul 22, 2022 - Jul 22, 2022 | ||
| Verify-T | Verify-VZ | ||||
| Dividend 2% | EX-DATE | Ave Vol | Dividend 2% | EX-DATE | Ave Vol |
| verify | Apr 13, 2022 | 63.096M | 5.26% | Apr 7, 2022 | 24.953M |
| Verify-T | Verify-VZ | ||||
| What story is the chart telling you? | |||||
| StockCarts | Finviz | BarCharts | StockCarts | Finviz | BarCharts |
 |  |  | | ||
| View Chart-T | See Support-T | View Chart-T | View Chart-VZ | See Support-VZ | View Chart-VZ |
| I hope you enjoyed this Covered Call Stock Showdown blog ... as always you know this is for entertainment and before EVER investing a nickel of your hard earned money you need to do your research or what they call due diligence ... no, nada, zip zilcho stock recommendations were made here ... this ALL should be your STARTING POINT for determining if either of these companies meet your stock investing risk profile. Good luck everyone! | |||||
| Disclaimer - Yes - at the time of this posting I do have a position in this equity. By posting this I am by no means recommending this equity and am not front running for its performance. I have risked my own money and am accountable for the trade results. | |||||
| Remember, the content of this site is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Please read the full disclaimer posted below and visit cptdashboard.com for my privacy policy. | |||||
| Trading stocks and options have risk. Required reading prior to placing money at risk with options is the ODD which is posted below. "The Characteristics & Risks of Standardized Options" Prior to buying or selling an option, investors must read a copy of the Characteristics & Risks of Standardized Options, also known as the options disclosure document (ODD). It explains the characteristics and risks of exchange traded options. | |||||
| - http://www.optionsclearing.com/about/publications/publication-listing.jsp | |||||
| Image credits - stockcharts.com | barchart.com | foolcdn.com | yahoo.com | earningswhispers.com | |||||
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