Verizon Communications (VZ) NewsBite - Verizon Unveils Unlimited Calling Plan

Posted on Tuesday, February 19, 2008 2:05 PM

Verizon Communications Inc. (VZ) opened at 38.19. So far today, the stock has hit a low of 36.34 and a high of 38.19. VZ is now trading at 36.19, down 1.64 (-4.29%). The stock hit its 52 week high of 46.24 in October and set its 52 week low of 35.40 in January. VZ rose for most of the past year, but has shown signs of weakness since November. Verizon Wireless shares have been dropping today after the company introduced an unlimited calling plan for $99.99 a month, raising concerns about a new era of aggressive phone call price discounts in the U.S. mobile market. A Bernstein analyst said the move was "likely to have repercussions for years to come in the sector." Technical indicators for the stock are bearish and steady while S&P gives VZ a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider an April bear-call credit spread above the $40 range. VZ stock could rise up to 10.5% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]