T Bear Put Spread — 2026-08-21

T (AT&T Inc.) shows bearish unusual options activity: $0K of buyer-initiated unusual call flow (0% call-dominant) detected across near-term expirations, with a peak vol/OI ratio of 3.3x on the 20 put. IV rank is 59 (elevated) — a bear put spread (22.5/22) trims theta/vega bleed versus a naked long. Buy the $22.5 / sell the $22 put bear put spread expiring 2026-08-21 (30 DTE) for a net debit of $0.18 ($18 per spread). Breakeven at $22.32; net delta 0.10. NOTE: earnings (2026-07-22) fall inside the trade window — premium will likely crush on the print; sized/structured defensively and not a hold-through-earnings idea.

Underlying: T @ ~$22.02 | 2026-08-21 (30 DTE) | Net debit (entry): ~$18 per spread. Use limit orders at the mid or slightly worse.

MAX LOSS: Limited to the net debit ($18 per spread). Max gain is capped at the strike width minus the debit — a defined-risk, defined-reward trade. | IV RISK: IV rank is 59 — reasonable for a debit spread. | TIMING: 30 DTE — unusual flow is a near-term signal; act promptly or the setup may stale. Close or take profit before expiration week to avoid gamma risk. | SECTOR: T is in Communications — avoid concentration with other open Communications positions. | EXECUTION: Use limit orders at mid or slightly worse on the spread (don't leg in). Verify the bid-ask before sending; do not chase with market orders. | EARNINGS: Report on 2026-07-22 lands inside this trade. Expect a vol crush on the print — this is structured as a spread for that reason; do not add size into the event.