Call Options on T on 5/30/2013

AT&T Inc. (AT&T) is a holding company. AT&T is a provider of telecommunications services in the United States and worldwide. Services offered include wireless communications, local exchange services and long-distance services. AT&T operates in four segments: Wireless, Wireline, Advertising Solutions and Other. Its Wireless subsidiaries provide both wireless voice and data communications services across the United States, and through roaming agreements, in a substantial number of foreign countries. Wireline subsidiaries provide primarily landline voice and data communication services, AT&T U-verse TV, high-speed broadband and voice services (U-verse) and managed networking to business customers. AT&T's Other segment includes customer information services (operator services) and corporate and other operations. On May 8, 2012, AT&T sold its Advertising Solutions segment.

Stockwinners is bullish on this name for the following reasons:

1. AT&T has a low implied volatility of only 14.50, which makes buying outright options particularly attractive, especially since 30 day realized vol is around 20, and 100 day realized vol is around 16.  The 50 day moving average around 37.30 is obvious resistance, but a move to that level would be almost a double for the July 36 call that we are recommending

Trade Buy 1 July $36.00 Call at $0.62 For a net debit of $0.62 Profit/Loss Analysis Breakeven at $36.62 Maximum profit is unbounded Maximum loss is ($62.00) at strike of $36.00 Closing Summary Sold 1 July $36.00 Call at $0.00

Position closed on 7/22/2013 at price of $0.00 with a -100.00% loss in 52 days.

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