Sidebar Sidebar
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

How to get Free lifetime AT&T 3g for your ipad.

Everyone needs to remember that the AT&T fee for your 3G on your iPad will cost you over $50 after all the taxes and fees!

I am buying anyway but everyone should look at the "complete" picture.:eek:
 
hugodrax said:
#1 Step one, Buy 100 shares of T
#2 Use dividends to pay 3G bill (Dividends total to 14 bucks a month)
enough to pay for most of the 15 dollar wireless package.

And you get your capital appreciation on your stock over the years, and the dividends will increase to match inflation. So if AT&T decides to raise the 3G prices, your dividends will go up due to more dividend payout.

You can also sell one covered call contract to boost your cash income and get more money to pay the 3G service. For example the October 27 strike contract and collect another cool 95 bucks.

so (95 + 168 = 263/12) = 21 bucks - 15 dollar 3G monthly expense = 6 dollars net credit.

So your 15 dollar plan gets subsidized by Wallstreet, you pocket the 6 bucks extra and use it to buy apps or 6 songs a month if you want.

Even better you can do these transactions on your iPad :)
Click to expand...

This works unless the stock goes down. Then you will find your fee to have been quite expensive.
 
Rob587 said:
OP: Awesome! Pure and simple!

And to answer someone's previous question.. if the stock goes down, the dividend will increase. So as long as you dont sell, you should be set.
Click to expand...


If the stock goes down it is most likely due to earnings going down. So when the company is earning less per share why would the amount of the dividends they pay out per share go up?
 
Nash Bridges said:
How is it free if you buy 100 Shares of T at todays price of 26.38?
Click to expand...

You shell out $2638 plus commission, but you still own an asset worth (today) $2638.

What happens if the stock goes up to 28.00 per share?
Click to expand...

Now you have an asset worth $2800.


Why would you sell a near month call rather than one that is next to the last expiration date?
Click to expand...

I think you mean why WOULDN'T you sell a near month call. Assuming that's what you meant, it's because options premiums lose value exponentially with time. There's little value in an expiring-month call. Better to sell them 3-6 months out.

The dividend rate can be changed at any time as well.
Click to expand...

Of course.

[/quote]What if the stock tanks and goes to $13.00?[/quote]

Then you have a paper loss of $2638 - $1300 = $1338. But keep in mind that you are collecting commissions and option premiums while you are waiting for T to fall/fail, so the loss might not be that great.

What about the commission on the trades?
Click to expand...

At Interactive Brokers, for example, the commission on this would be $1. Insignificant.

(Why people pay $10 to $30 minimum commission per trade at so-called "discount" brokers is beyond me. IB is way cheaper, has way better customer service and reliability, and offers a far wider range of markets than the popular so-called discount brokers.)

Anyway, I think it was intended as an amusing mental exercise. Good job!
 
Or if you have an iPhone you can jailbreak get mywi then have your 3G connection on your iPad wherever you are.
 
jtara said:
You shell out $2638 plus commission, but you still own an asset worth (today) $2638.



Now you have an asset worth $2800.
Click to expand...

What happens to the value of the $27.00 call?
Or better yet what if it goes up to 31.00?

You will have to sell it at 28.00. Sure you get the 70 cent premium but you are out money and then you have to buy it back at a higher price.
 
Interesting, although it would cost your around $2600 up front, which most people do not have.

Also, there are tax implications. You don't just get all that money, you'd have to pay taxes on the dividends.

It could make you money in the end though if the stock goes up and you sell.

While the idea has flaws, I like the creative thinking behind it!
 
jtara said:
I think you mean why WOULDN'T you sell a near month call. Assuming that's what you meant, it's because options premiums lose value exponentially with time. There's little value in an expiring-month call. Better to sell them 3-6 months out.



Of course.
Click to expand...

What you are referring to is call the "Delta" and it is not linear
 
jtara said:
What if the stock tanks and goes to $13.00?

Then you have a paper loss of $2638 - $1300 = $1338. But keep in mind that you are collecting commissions and option premiums while you are waiting for T to fall/fail, so the loss might not be that great.
Click to expand...

Remember the value of a stock is defined as the present day value of future earnings adjusted for inflation.

Aside from that, if the stock loses half of its value the dividends will be cut as well and the premiums for the options will go down as well.
 
Nash Bridges said:
What happens to the value of the $27.00 call?
Or better yet what if it goes up to 31.00?

You will have to sell it at 28.00. Sure you get the 70 cent premium but you are out money and then you have to buy it back at a higher price.
Click to expand...

No you dont. You can let your equity position get called away, what happens monday morning is you will see 2800 bucks in your account. (minus the assignment fee which is usually 20 dollars)

Then if you want you can sell 1 short put strike 26 :D
 
jtara said:
At Interactive Brokers, for example, the commission on this would be $1. Insignificant.

(Why people pay $10 to $30 minimum commission per trade at so-called "discount" brokers is beyond me. IB is way cheaper, has way better customer service and reliability, and offers a far wider range of markets than the popular so-called discount brokers.)

Anyway, I think it was intended as an amusing mental exercise. Good job!
Click to expand...

Personally I use trade monster and options trading has a different price structure than plain stock trading.
 
Nash Bridges said:
Remember the value of a stock is defined as the present day value of future earnings adjusted for inflation.

Aside from that, if the stock loses half of its value the dividends will be cut as well and the premiums for the options will go down as well.
Click to expand...

You can buy AT&T stock insurance think of it as Apple care for stock. For the price of 22 dollars. So if your stock breaks you can get a refund. You can use some of that call premium to cover the AT&T stock insurance cost.
 
hugodrax said:
No you dont. You can let your equity position get called away, what happens monday morning is you will see 2800 bucks in your account. (minus the assignment fee which is usually 20 dollars)

Then if you want you can sell 1 short put strike 26 :D
Click to expand...

When you are called out you are selling it. That is what I meant.
If you buy the stock at 26.38 and sell the near month 27.00 strike say for $1.00 and you get called out your maximum profit is $1.62.
If the stock is 31.00 at expiration you have then lost the $3.00 profit that you would have had.

On the other hand you could buy the options contract back and sell the stock. How far into it you are before the 3rd Friday of the month would determine the Delta and if it would be more profitable to buy it back then let it expire.
 
hugodrax said:
You can buy AT&T stock insurance think of it as Apple care for stock. For the price of 22 dollars. So if your stock breaks you can get a refund. You can use some of that call premium to cover the AT&T stock insurance cost.
Click to expand...


If you are looking for something to buy I would recommend staying away from anything that is heavily dependent on the US consumer. The collapse of 2008 was just the warm up for what is going to unfold within the next few years.

Look at this
WESTSHORE TERMINALS (WTSHF.PK)
They are the largest West Coast Canadian exporter of coal to China. And China isn't going to stop using coal anytime soon. The stock is good for capital appreciation and pays dividends in the 10 to 11 percent range.

The risk: a natural disaster occurs on the west coast of Canada where their terminals are located.
 
I have a much cleaner... easier solution!

Just take the $360 (one year at $30/month) and hit the roulette table.

Put it ALL on black. If it hits, you now have 1 year's worth of 3G.
If it misses, just put another $720 on black to get that loss back, plus 1 year's worth of data.
If it misses again, just put another $1440 on black.
Then you'll be able to recoup the $1080 you lost plus have a year's worth of 3G!
If it misses again, well put another $2880 on black.
Then you'll be able to recoup the $2520 you lost plus, you'll have a year's worth of 3G!
<repeat pattern until you have that $360 in profit>

Do again next year.

This plan is flawless. Eventually it will hit.

What could I possibly be missing with this plan?? :D
 
Scott-n-Houston said:
I have a much cleaner... easier solution!

Just take the $360 (one year at $30/month) and hit the roulette table.

Put it ALL on black. If it hits, you now have 1 year's worth of 3G.
If it misses, just put another $720 on black to get that loss back, plus 1 year's worth of data.
If it misses again, just put another $1440 on black.
Then you'll be able to recoup the $1080 you lost plus have a year's worth of 3G!
If it misses again, well put another $2880 on black.
Then you'll be able to recoup the $2520 you lost plus, you'll have a year's worth of 3G!
<repeat pattern until you have that $360 in profit>

Do again next year.

This plan is flawless. Eventually it will hit.

What could I possibly be missing with this plan?? :D
Click to expand...

Can we count on you to provide the up front financing for this if it doesn't hit Black until the 23rd time?
 
Nash Bridges said:
Personally I use trade monster and options trading has a different price structure than plain stock trading.
Click to expand...

Oops, I left out the commission on the covered option sale. That'll cost you another buck at IB. And another buck each time you do it again. (Rate is .70 per contract for premiums over .10, with a $1 minimum.)
 
Isn't this how everybody does it.
An uncle purchased 1500 shares of IBM in the forties(which he left to me). Few splits later and I get dividends to live on, quarterly.
 
You must log in or register to reply here.
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.
Top Bottom
Back