AT&T Calls a Bargain
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With all the media attention on the iPhone have you considered AT&T [T] as a buy? If not check out the Jan 09 $20 Calls on AT&T. Premium is nil. Check out the chart. It has been in a very positive uptrend. The trend is in a very tight range and it is currently trading near its 50day moving average.
After you’ve looked at the chart ask yourself, “Is AT&T going to steal massive numbers of customers from its competitors? Are they going to get extremely profitable data plan signups with the iPhone?” I saw on CNBC just last night that the demographic that is attracted to the iPhone is the same demographic as a typical T-Mobile customer. Hmmm, we have a loser in this Apple saga potentially? But enough about losers. We are only interested in the winners because to the winners go the spoils.
Another interesting thing here is there is virtually no time premium in this call. It is cheaper than dirt right now.
Bottom Line:
Buy the Jan 09 $20 Calls[VFEAE.X].
4 Comments on this post
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Make Money With Funds said:
At&T does seem to be interesting…
The only thing – right now due to the merge with Cingular, they have real mess in their intranet, and I actually was hit by that when my money suddenly dissapeared from my balance and my cellphone connection was cut for 2 days, and that was my work cell
They fixed it, but did not offer neither apology nor additional minutes, nor free lunch…June 9th, 2007 at 11:59 am -
Dax Desai said:
Ha ha. I used to work for Cingular once upon a lifetime, but I had T-Mobile service (and it wasn’t because I had a contract).
When Cingular and AT&T merged, both were well-known to have poor customer service. Your incident doesn’t surprise me in the least.
However, how often do you need to call customer service really? AT&T/Cingular has the hottest phones on the market now. This is a major reversal. When I had T-Mobile and worked at Cingular one of my reasons was Cingular didn’t have good phones relative to the other carriers. Now it has changed and they have the must have phones. It all started with the Motorola Razr and now the iPhone. The iPhone is an AT&T exclusive for 5yrs in the U.S. They will sell them overseas though with other carriers so I’ll be waiting until a model that support 3g comes out. AT&T doesn’t have a 3G network. It is more like 2.5. If I’m going to be getting the “real internet” I want it fast.
June 9th, 2007 at 12:05 pm -
Blogging with Desi Baba said:
I just hope Apple considers opening up it’s iPhone access to T-Mobile service. T-Mobile has a lot of youth who would actually spend the money to buy it.
June 11th, 2007 at 8:38 pm -
Dax Desai said:
They will eventually. They are 5 year exclusive in the U.S. with AT&T so no T-Mobile here. In Europe however they may let T-Mobile sell the handsets.
June 12th, 2007 at 9:09 am
