Verizon Steps Up

We have made a recent discovery this week regarding how Verizon ($VZ) has been performing over the last few sessions. On days where the market is red, choppy, or showing mixed signals. Verizon trends upwards. Today the 3 major indexes showed uncertainty and chop. Early morning we saw a big selloff, then as the day progressed we came higher. From the open today Verizon only trended upward, finishing positive about 1%. This may not seem like a lot, but big moves for Verizon are typically around this percentage. The option chain for this stock significantly changes when Verizon moves like it did today. Yesterday, (7/16) the S&P went sideways, while Verizon went up 1.10%. On (7/13) we saw the SPY take a massive late day dip of about 8 points. The cellular giant held up during the selloff, and closed green by a small percentage. Nothing major but clearly showing signs of recent strength. Today, I purchased 2 Verizon calls to try and support my theory. A $56 strike expiring today. Purchased for $25 a contract and sold at $58 each. I even had bought the same contract for $41 two weeks prior and was down 80% going into today. I closed that contract up 35%. When you see the market trend sideways and/or looking red, keep an eye on Verizon as it could be a good leverage play going forward.

-TJ Brescia

Leave a Reply

%d bloggers like this: