• Chart of the Day: AT&T Inc. (T)

    by  • June 27, 2013 1:06 pm • Charts to Watch, Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart is of AT&T Inc. (T) which provides provides telecommunications services to consumers, businesses, and other providers in the United States and internationally. The company operates in three segments: Wireless, Wireline, and Other.

    Ticker:  AT&T Inc. (T)

    What I Am Looking At:

    • April peak just above the 2012 highs and below the round-number $40 level, forming a double top pattern
    • Shares have been underperforming the broader market, up 5 percent year-to-date and up nearly 2 percent during the past year
    • Facing resistance from the drawn downtrend line and the 200-day moving average
    • Relative Strength Index showing short-term overbought condition
    • Peak call open interest for the July series is located at the 36- and 37-strike prices, which could pose as potential roadblocks for shares
    • The 50-day buy-to-open call/put ratio stands at 1.64, ranking in the 99th percentile of all readings taken during the past year, an indication of extreme optimism despite the shares’ lackluster performance
    • Sentiment among short-sellers showing a lack of interest as just 1.4 percent of the float is sold short

    Strategy:  Short position with a stop above June high

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    About

    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.

    http://www.schaeffersresearch.com/

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