T and TXN are both bucking the broad-market selloff today
Another day, another packed slate of corporate reports. Today's notable winners include AT&T Inc (NYSE:T) and Texas Instruments Inc (NASDAQ:TXN), after their third-quarter results are leading shares higher in the morning. However, options traders have a different idea.
T Making a Run at New Highs
Telecommunications giant AT&T beat quarterly earnings expectations and maintained its full year earnings guidance, offsetting disappointing revenue and postpaid phone net additions. At last glance, AT&T stock was 2.2% to trade higher at $21.98, just below its Sept. 16, multi-year high of $22.34. Amidst consolidation below those highs since then, the shares tested their 40-day moving average yesterday. Year over year, T is up 39.6%.
In just the first hour of trading, over 40,000 T options have changed hands today, and 17,000 of them puts, volume that is quadruple the average intraday amount. The weekly 10/25 21.50-strike put is seeing the most attention, with new positions bought to open.
Options Bears Get Bold With TXN
Semiconductor concern Texas Instruments beat third-quarter earnings and revenue estimates, but issued fourth-quarter guidance that was below forecasts. TXN was last seen up 4.2% to trade at $202.11, extending its 12-month gain to 36.5%. The shares are bouncing off their 160-day trendline, an area that caught pullbacks yesterday and in August.
At last check, over 20,000 puts have changed hands, volume that's 12 times the average intraday amount. The weekly 10/25 190-strike put is the most popular, with new positions being bought to open. The November 190 put is also popular.