American Tower Corporation (AMT) is a holding company. It is a wireless and broadcast communications infrastructure company that owns, operates and develops communications sites. Its primary business includes leasing antenna space on multi-tenant communications sites to wireless service providers and radio and television broadcast companies. This business is its rental and management operations. The Company also offers tower-related services domestically, including site acquisition, zoning and permitting services and structural analysis services, which primarily support its site leasing business and the addition of new tenants and equipment on its sites. On August 6, 2010, the Company’s, Transcend Infrastructure Limited, acquired Essar Telecom Infrastructure Private Limited (ETIPL). On June 29, 2010, it acquired 113 towers from Telefonica Chile S.A. As of December 31, 2010, the Company acquired 475 towers from Telefonica del Peru S.A.A.
This is a covered call trade for monthly income using AMT as the underlying stock. AMT has a neutral equity score of 5.8 in a 10 point scalle by analyst covering the stock.
Look at the January 2012 59.65 covered call. For each 100 shares of American Tower Corp (AMT) stock you buy, sell one January 59.65 covered call option for a 57.19 (58.69 – 1.50) debit or better. That’s potentially a 4.3% assigned return.
The technicals for AMT are bullish with a weak upward trend. The stock is under accumulation with support at 57.67. S&P rates this stock 5 STARS (out of five) – strong buy.