Who peed in the markets cheerio's this morning?

E said:

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Who peed in the markets cheerio's this morning?

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Brainard

Triple_Bagger said:

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Thanks again on the tips. Are you planning to sell covered calls on T anytime soon? It's had a pretty big move. Seems like selling some leaps could be profitable if it we think it's going to cool off after this move.

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Short Answer, no.

Long Answer, I am bearish Growth stocks and bullish Value stocks long term and believe a rotation is taking place as I type. I am bullish the market long term with steadfast trend up (12 months), but I am nervous about recession. Barring no recession and no virus shutdowns I think the U.S. economic engine continues to purrrr. I don't see the Fed raising rates. With specific focus to T and I am a long term holder,....the leadership of that company has received no, to little, good/support from the press. The former/current T leadership has made some poor decisions, no question and not debatable; however, current leadership either got a fire lit under their bottoms by "someone" or else they finally got it figured out after the price of tuition sank T share price to a below-book value number. Whatever the case, everything I hear, read, can get my hands on tells me they got this one right - "the Time Warner Bros/Discovery deal" (which still has to be approved in the U.S.). The shares in this NewCo I believe will explode in price, if the company gets a chance to perform on its own. Albeit, I believe Disney or Apple will acquire them before NewCo gets their feet on the ground. Malone and Zaslav(2 really smart guys) have the WB/D deal under control and they'll extract every dime of value. It's estimated that T shareholders will receive 17 shares of NewCo for every 100 shares of T they own (this formula has not been finalized - it's analysts guesstimates). T will have it's debt reduced after the deal. Currently T's free cash flow is 2X debt service so they could service debt "as-is" if the WB/D deal is not approved by the DOJ. T is one strong company, subscriptions are up, and they are looking at spinning off the DirectTV/Dish deal, and selling the CW Network and all these businesses roll up to AT&T. T is going to focus on communications and networks and exit entertainment. Think about it, without AT&T there is no internet - heck, they enable Apple, but you couldn't tell it by share price. Tail wagging the dog. With this wall of words,...so much change taking place in T over the next 4 to 5 months, I don't want to (I'm scared to) sell Calls and lose a position. I'm so bullish T I can't see straight. Slow and steady wins the race and investors have not shown any kindness to T....until maybe today....and T keeps chugging upward at a really nice and slow pace. At some point this thing is going to pop to the upside($2+ move), because so many are watching T with money to pour in. I'm always big on selling Calls, especially when I can capture a premium equivalent to a dividend, or more. This time I am super shy of selling Calls - I am married to this position with a future outcome in mind. If my stance of selling Calls changes, I'll post. ....... Caveat - If you're not a long term holder, sell Calls, Option it and trade it.