Buy Alert: February 25, 2014

Marcus Haber | February 25, 2014

Buy Alert: February 25, 2014

Trade Details

Buy Verizon Communications (VZ) April $47 Calls for $1.15 or better

Why?

VZ has been trending down in recent months, although the stock is generally not very volatile. Still, the share price is sitting beneath its major moving average despite the rest of the market performing very well. Keep in mind, VZ is still a very strong company with impressive fundamentals, including a 4.6% dividend yield.

And now, we just may have a short-term catalyst on our hands. It appears VZ could be next in line to sign a faster download deal with Netflix (NFLX). That could amount to another solid source of revenues for the telecom giant. Not to mention, the upcoming launch of the Samsung Galaxy S5 could spark a new wave of robust phone plan sales.

Let’s give this trade some time to develop and grab the April $47 calls.