How to Play AT&T Ahead of Earnings

The video discusses the seasonality of the VIX, highlighting trends in volatility during the late summer and early autumn months. It suggests that when the VIX is low, investors should consider hedging by buying options. The video then shifts focus to AT&T, analyzing its earnings, market movements, and the implications of its high dividend yield. It warns of potential risks related to capital allocation and suggests protective strategies for investors.

What is a common pattern observed in the VIX during the late summer and early autumn months?

• A consistent upward trend

• Spikes in volatility

• A decrease in market activity

• A steady increase in volatility

Why might investors consider buying options when the VIX is below the teens?

• The market is more volatile

• Options are more expensive

• The market is less predictable

• Options are relatively inexpensive

What is a notable feature of AT&T's financial situation discussed in the video?

• A high dividend yield

• A low market share

• A declining stock price

• A high level of debt

What potential risk is associated with AT&T's capital allocation strategy?

• Increased market competition

• Rising interest rates

• Becoming capital constrained

• Decreasing consumer demand

What is a suggested strategy to protect investments in AT&T?

• Investing in other companies

• Using put options

• Selling all shares

• Buying more shares