A Closer Look at AT&T's Options Market Dynamics

Author: Benzinga Insights | July 11, 2024 11:47am

Whales with a lot of money to spend have taken a noticeably bearish stance on AT&T.

Looking at options history for AT&T (NYSE:T) we detected 8 trades.

If we consider the specifics of each trade, it is accurate to state that 37% of the investors opened trades with bullish expectations and 62% with bearish.

From the overall spotted trades, 6 are puts, for a total amount of $375,655 and 2, calls, for a total amount of $68,465.

Projected Price Targets

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $14.5 to $22.0 for AT&T during the past quarter.

Insights into Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for AT&T's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across AT&T's significant trades, within a strike price range of $14.5 to $22.0, over the past month.

AT&T Option Activity Analysis: Last 30 Days

Options Call Chart

Noteworthy Options Activity:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
T	PUT	SWEEP	BULLISH	12/20/24	$1.79	$1.7	$1.7	$20.00	$149.6K	3.1K	0
T	PUT	SWEEP	BEARISH	06/20/25	$3.75	$3.65	$3.75	$22.00	$103.8K	5.5K	0
T	PUT	SWEEP	BEARISH	06/20/25	$3.7	$3.6	$3.7	$22.00	$42.1K	5.5K	331
T	CALL	TRADE	BEARISH	06/20/25	$2.66	$2.62	$2.62	$17.00	$35.8K	24.0K	2
T	CALL	TRADE	BULLISH	08/02/24	$4.3	$3.3	$4.23	$14.50	$32.5K	0	52

About AT&T

The wireless business contributes about two thirds of AT&T's revenue. The firm is the third-largest US wireless carrier, connecting 72 million postpaid and 17 million prepaid phone customers. Fixed-line enterprise services, which account for about 16% of revenue, include internet access, private networking, security, voice, and wholesale network capacity. Residential fixed-line services, about 11% of revenue, primarily consist of broadband internet access, serving 14 million customers. AT&T also has a sizable presence in Mexico, with 22 million customers, but this business only accounts for 3% of revenue. The firm still holds a 70% equity stake in satellite television provider DirecTV but does not consolidate this business in its financial statements.

After a thorough review of the options trading surrounding AT&T, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

AT&T's Current Market Status

With a volume of 7,550,223, the price of T is up 0.03% at $18.75.
RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
Next earnings are expected to be released in 13 days.

Expert Opinions on AT&T

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $22.2.

An analyst from Oppenheimer persists with their Outperform rating on AT&T, maintaining a target price of $21.
Consistent in their evaluation, an analyst from UBS keeps a Buy rating on AT&T with a target price of $24.
An analyst from Deutsche Bank has decided to maintain their Buy rating on AT&T, which currently sits at a price target of $26.
In a cautious move, an analyst from RBC Capital downgraded its rating to Sector Perform, setting a price target of $18.
An analyst from Goldman Sachs downgraded its action to Buy with a price target of $22.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for AT&T, Benzinga Pro gives you real-time options trades alerts.

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