All You Ever Wanted to Know About Dividend Plays

• Posted by Adam Warner
• on January 8th, 2010

I took a little deeper look into the Bizarro volume T and VZ dividend plays of the other day over at Options Zone.

The big trade Tuesday was massive call volume in Verizon (VZ) and AT&T (T), particularly in the January in-the-money (ITM) options that basically carry a 100 delta (i.e., they are virtually stock). In fact, volume was so high that it dwarfed the pre-existing open interest in both names.

To add even more intrigue, both names found themselves all over the newswires thanks to Google (GOOG) unveiling the new Nexus One smartphone.

At first glance, you might be thinking this looks like smart money loading up on calls.

But of course it was anything but. To see my exciting conclusions and a random Alyssa Milano reference, please click thru.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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