Puts on the Verizon
I sold a few May puts on Verizon (VZ) today as it was selling off on the news of its successful bid to acquire MCI (MCIP). While not exactly a compelling buy based on its longer-term technical performance, it has been showing some signs of life recently (see the most recent blue chip weekly trend analysis) after declining for several months from the 42 price level it reached late last year.
If it goes sideways or up from here into May expiration, I’ll be happy to walk away with the premium from the option sale. On the other hand, its 4.5%-plus dividend yield makes the possibility of owning a relatively small position in the stock (if I am put it) quite palatable.
