7 Home Run Options Trades

• «

Home Run Trade #7: AT&T (T) Puts

By Chris Johnson and Jon Lewis

After starting as Pacific Bell Park, then SBC Park and, finally, AT&T Park, the San Francisco Giants' ballpark somewhat resembles its namesake given all of the merger activity and name changes. Unfortunately, AT&T's (T) performance has been like the Giants -- trying hard, but just not getting where they want to be.

The communication "giant" has struggled to keep up with the market as other companies and changes in the environment threaten T. We still see some optimism toward the stock, indicating that the short-to-intermediate-term outlook will have some challenges. Given this, our outlook suggests that T may move back toward the $20 level over the next six months, making it a good candidate for put options.

Learn How to Pick the Right Put Option.