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Trade of the Day: Verizon Communications Inc. (VZ)

We expect VZ to fall to horizontal support at $46

By John Jagerson and Wade Hansen, Editors, Strategic Trader


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Today, we’re opening a new bearish trade on Verizon Communications Inc. (NYSE:VZ).

VZ has been in a strong downtrend since early February, and it is now making another bearish break out of a multi-week consolidation range and below a key up-trending support level. Treasury yields are moving higher once again, and that is putting pressure on the strong 4.99% dividend yield VZ is currently offering.

While 4.99% may look like an attractive enough dividend yield to entice new investors, it’s important to remember that a rising dividend yield is simply a byproduct of a stock that is dropping. We expect VZ to continue falling to horizontal support at $46.

Buy to open the VZ May 47 Put (VZ180518P00047000) for a maximum price of $1.50.

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InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.

Article printed from InvestorPlace Media, https://investorplace.com/2018/03/trade-of-the-day-verizon-communications-inc-vz/.

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