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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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