Analysts' average target price for T-Mobile is currently $242.11 which is +33.9% above today's stock purchase price. Fundamentally speaking, T-Mobile is rated by LSEG Stocks Plus Report (on a scale of 1 to 10) with an Average Score of 9 and an Optimized Score of 9. T-Mobile also currently meets all criteria in my Shareholder Yield stock screener:As detailed below, two potential return-on-investment results are:
T-Mobile US, Inc. (TMUS) -- New Covered Call Position
The buy/write transaction was:
8/20/2026 Bought 100 T-Mobile shares @ $180.86.
8/20/2026 Sold 1 T-Mobile 9/4/2026 $175.00 Call option @ $7.80 per share. The Implied Volatility of the Call option was 32.5 when this transaction was executed. I prefer to establish Covered Call positions when a stock price is temporarily declining and the short-term Relative Strength [RSI(2)] is in oversold territory (i.e. below 30) -- both of these conditions were met when establishing this T-Mobile position, and when this occurs the Implied Volatility is temporarily increasing so that the potential annualized return-on-investment is also increasing. 😄
8/28/2026 Upcoming quarterly ex-dividend of $1.02 per share.
Two possible overall performance results (including commissions) for this Covered Call position are as follows:
T-Mobile Covered Call Cost Basis: $17,306.67
= ($180.86 - $7.80) * 100 shares + $.67 commission
Net Profit Components:
(a) Options Income: +$780.00
= ($7.80 * 100 shares)
(b) Dividend Income (If option exercised early on August 27th, 2026, the business day prior to the August 28th ex-div date): +$0.00; or
(b) Dividend Income (If T-Mobile stock assigned at the September 4th, 2026 options expiration): +$102.00
= ($1.02 dividend per share x 100 shares)
(c) Capital Appreciation (If T-Mobile Call option assigned early on August 28th): -$586.00
+($175.00 strike price - $180.86 stock purchase price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at $175.00 strike price on the 9/4/2026 options expiration date): -$586.00
+($175.00 - $180.86) * 100 shares
These attractive return-on-investment results will be achieved as long as the stock is above the $175.00 strike price at assignment. If the stock declines below the strike price, the breakeven price of $172.04 ($180.86 - $7.80 - $1.02) provides 4.9% downside protection below today's stock purchase price.
At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet must be 'YES' prior to establishing a position. As shown below with this T-Mobile US, Inc. position, eight of the nine criteria are met.
- +1.1% absolute return (equivalent to +57.8% annualized return-on-investment for the next 7 days) if the stock is assigned early (on the last business day prior to the August 28th, 2026 ex-dividend date); OR
- +1.7% absolute return (equivalent to +41.6% annualized return-on-investment over the next 15 days) if T-Mobile's stock is assigned on the September 4th options expiration date.
T-Mobile US, Inc. (TMUS) -- New Covered Call Position
8/20/2026 Bought 100 T-Mobile shares @ $180.86.
8/20/2026 Sold 1 T-Mobile 9/4/2026 $175.00 Call option @ $7.80 per share. The Implied Volatility of the Call option was 32.5 when this transaction was executed. I prefer to establish Covered Call positions when a stock price is temporarily declining and the short-term Relative Strength [RSI(2)] is in oversold territory (i.e. below 30) -- both of these conditions were met when establishing this T-Mobile position, and when this occurs the Implied Volatility is temporarily increasing so that the potential annualized return-on-investment is also increasing. 😄
8/28/2026 Upcoming quarterly ex-dividend of $1.02 per share.
Two possible overall performance results (including commissions) for this Covered Call position are as follows:
T-Mobile Covered Call Cost Basis: $17,306.67
= ($180.86 - $7.80) * 100 shares + $.67 commission
Net Profit Components:
(a) Options Income: +$780.00
= ($7.80 * 100 shares)
(b) Dividend Income (If option exercised early on August 27th, 2026, the business day prior to the August 28th ex-div date): +$0.00; or
(b) Dividend Income (If T-Mobile stock assigned at the September 4th, 2026 options expiration): +$102.00
= ($1.02 dividend per share x 100 shares)
(c) Capital Appreciation (If T-Mobile Call option assigned early on August 28th): -$586.00
+($175.00 strike price - $180.86 stock purchase price) * 100 shares; or
(c) Capital Appreciation (If shares assigned at $175.00 strike price on the 9/4/2026 options expiration date): -$586.00
+($175.00 - $180.86) * 100 shares
1. Total Net Profit [If option exercised on Aug. 27th (business day prior to the Aug. 28th ex-dividend date)]: +$194.00
= (+$780.00 option income + $0.00 dividend income - $586.00 capital appreciation); or
2. Total Net Profit (If T-Mobile shares assigned at $175.00 strike price at the September 4th, 2026 options expiration date): +$296.00
= (+$785.00 option income + $102.00 dividend income - $586.00 capital appreciation)
1. Absolute Return (If option exercised early): +1.1%
= +$194.00/$17,306.67
Annualized Return-on-Investment (If option exercised early): +58.4%
= (+$194.00/$17,306.67) * (365/7 days); or
2. Absolute Return (If T-Mobile shares assigned at the $175.00 strike price at the Sept. 4th, 2026 options expiration date): +1.7%
= +$296.00/$17,306.67
Annualized Return-on-Investment (If T-Mobile shares assigned at the $175.00 at the Sept. 4th, 2026 options expiration date): +41.6%
= (+$296.00/$17,306.67) x (365/15 days)
These attractive return-on-investment results will be achieved as long as the stock is above the $175.00 strike price at assignment. If the stock declines below the strike price, the breakeven price of $172.04 ($180.86 - $7.80 - $1.02) provides 4.9% downside protection below today's stock purchase price.
At least eight of the nine metrics used in the Covered Calls Advisor's Dividend Capture Strategy spreadsheet must be 'YES' prior to establishing a position. As shown below with this T-Mobile US, Inc. position, eight of the nine criteria are met.
