If you're a subscriber then you are well aware that we have two active/open alerts. One on AT&T where we entered the April 20, 2018 $37 Calls at .38 cents or less. It has dropped at low at .13 cents and we are holding. The other was issued Friday for the QQQ options, the Apr 20, 2018 $162 Calls where we entered at $3.92 or less. Both are underwater! We are holding and think (hope) that buyers will come in and drive both these alerts up for good returns.
As far as AT&T, Wells Fargo has them rated at outperform with a price target of $40. We have looked at the technicals and a double bottom has clearly formed. A double bottom is a charting pattern that looks like the letter "W". The twice-touched low is considered a support level. So we are very excited that in this oversold condition we will see a good rebound.
The QQQ ETF is also oversold and we have about 25 days, on QQQ and T both, before expiration. So hold on, while we can't know for certain what will happen things appear to be switching back over to push both our alerts up to a positive return. Of course, you can always buy additional contracts at the current levels do effectively lower the overall entry target. This will of course reduce the cost basis. Thanks once again!