Cramer’s Comments: You have to buy this stock. AT&T is too cheap at $31!
Jud’s Comments: Buy-write time!
|
If you AGREE with Cramer…
Strategy: Buy-write
|
|||||
| Leg | Action | Expiry | Stk | Call/Put | Price |
|---|---|---|---|---|---|
| Leg 1 | Buy | T | Stock | $31.83 | |
| Leg 2 | Sell | Jan | T | Calls | 32.50 |
| Premium: | Pay $2.22 | ||||
| Break Even: | $29.61 or higher | ||||
| Max Gain: | $2.89 plus 80 cents in dividends | ||||
| Max Loss: | $29.61 | ||||
|
If you DISAGREE with Cramer…
Strategy: Collar
|
|||||
| Leg | Action | Expiry | Stk | Call/Put | Price |
|---|---|---|---|---|---|
| Leg 1 | Buy | Oct | T | Puts | 30 |
| Leg 2 | Sell | Oct | T | Calls | 32.50 |
| Premium: | Collect $.35 | ||||
| Break Even: | $32.85 or lower | ||||
| Max Gain: | $30.35 | ||||
| Max Loss: | Unlimited minus $32.85 | ||||

