T Options Trading — Covered Calls, Puts & the Wheel
A complete guide to selling options on AT&T Inc.. Expected premiums, strike selection, real example trades, and the four strategies that actually work for T.
Why trade options on T?
T (AT&T Inc.) is a large-cap communication name with a low share price and excellent options liquidity. Implied volatility is low, so premiums are modest. Traders use this name when they want stability and a low probability of assignment rather than maximum yield. It also pays a dividend, which adds a second income stream on top of the premium you collect.
Typical monthly premium collected on T runs around 0.5-1.0% of capital, which annualizes to roughly 6-12% if you sell new contracts every cycle. Capital required to run a single contract wheel on T is under $5,000 — the share price and the 100-share lot size set the minimum, not the strategy.
Live Data Snapshot
See the full T case study at /stocks/t-covered-calls-cash-secured-puts for a sample trade and full strategy breakdown.
Four strategies that work on T
T Covered Call
Sell upside calls against 100 shares you already own to collect premium every month while capping your upside.
Read the T Covered Call guide →T Cash-Secured Put
Sell a put backed by cash so you either get paid to wait or acquire the stock at a discount to today's price.
Read the T Cash-Secured Put guide →T Wheel
Alternate between cash-secured puts and covered calls on the same ticker to generate continuous premium income.
Read the T Wheel guide →T Poor Man's Covered Call
Replace the 100 shares with a long-dated deep-ITM LEAPS call and sell short-dated calls against it to reduce capital.
Read the T Poor Man's Covered Call guide →T options FAQ
What is the best strike price for a T covered call?
On T, target 3-5% out of the money at 0.25-0.35 delta. On a low-volatility stock like this, closer-to-the-money strikes chase premium but spike assignment probability to uncomfortable levels.
How much premium can I collect selling calls on T?
Typical monthly premium on T is 0.5-1.0% of position value, annualizing to 6-12% when you roll every cycle. Earnings months can pay 2-3x the normal rate because of elevated IV.
What is the best delta for a T cash-secured put?
A delta of 0.25-0.35 on T balances premium income with assignment probability. Many traders anchor to 0.20 delta as a starting point and adjust based on their willingness to own shares.
How much cash do I need to sell a put on T?
Cash required is 100 × strike price. For T, that's roughly under $5,000 per contract at a typical strike. Most brokers let you use margin, but for a true cash-secured put you set aside the full amount.
Is T a good stock for the wheel strategy?
T is excellent for the wheel because of its penny-wide spreads and low IV (modest premium, low assignment risk). It also pays a dividend, which you continue collecting while holding the shares between wheel legs.
Can you run a poor man's covered call on T?
Yes. Buy a 0.80+ delta LEAPS on T dated 12-18 months out as your synthetic long, then sell short-dated calls 3-5% above the stock at 0.25-0.35 delta. Capital tied up drops from under $5,000 to roughly 30-50% of that — a meaningful improvement when the share price is a low share price.
What expiration should I use for T options strategy trades?
Use 30-45 DTE as a default for T. This is the classic theta sweet spot and works well on a stable ticker like this.
Is T suitable for beginners selling options?
Yes — it's a well-known, liquid name with established options markets, which is what beginners need.
Run the numbers on T yourself
Use the free OptionsPilot calculator to price covered calls and cash-secured puts on T with live quotes.
Open the T Strike Finder →