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What’s with the AT&T (T)?

Wow, AT&T (T) crashed this morning more than 25% after the spinoff was finalized over the weekend. But then, the media told you that AT&T rallied almost 8% after the spinoff.

AT&T crash

So, what is wrong with this chart? How can the stock open below $19 a share when it closed above $23 a share the previous day on Friday and everybody calls it an 8% runup and a victory for AT&T?

There is not much information on this item but this seems to be a discrepancy and not a crash. A discrepancy due to spinoff when the media and their charting systems were not yet able to adjust the price for the spinoff.

So we need to wait a day or two to see what happens next. If the charts get adjusted (in a similar manner to a stock split) then this was a truly remarkable day for the AT&T stock. If the charts remain the same, then the old investors will get busted hard.

Nevertheless, I am happy that I got rid of this stock when it was trading at $30 a share.

But on the other hand, if this stock is truly trading at $19.63 a share, down from $23 a share, then the stock is down to its 20-year low and that could be a great opportunity to buy in:

AT&T crash opportunity

But, we need to wait for the brokers and chart services to update the data before we jump in.

Why do I think that this is just a discrepancy? It is because I still hold short strangles against AT&T and these were not adjusted. In fact, I cannot even adjust my positions as the options chains are not available. So we need to wait.

1 response to “What’s with the AT&T (T)?”

  1. D’Mo says:

    Read the news #WBD

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