AT&T's (T) 2.47% Plunge: Subscriber Surge vs. Earnings Miss – What's Next?

Summary
• AT&T (T) plunges 2.47% to $25.405, trading below its 52-week low of $21.38
• Q3 earnings miss estimates despite 405,000 postpaid subscriber gain
• Options chain shows heavy put buying ahead of October 31 expiration

AT&T’s stock faces a critical juncture as mixed Q3 results clash with subscriber optimism. The $25.405 price, down from $26.05 at open, reflects investor skepticism over revenue challenges despite strong customer additions. With the 52-week range of $21.38–$29.79 and a dynamic PE of 10.25, the stock’s technicals and options activity signal a pivotal short-term battle for support.
Earnings Disappointment Overshadows Subscriber Gains
AT&T’s 2.47% intraday drop stems from a Q3 earnings report that missed revenue expectations despite a surprise 405,000 postpaid subscriber increase. While the company affirmed full-year guidance, the $30.7 billion revenue fell short of the $30.87 billion forecast. Investors are pricing in concerns over wireline revenue declines and rising operating costs, which rose 3.8% in the mobility unit. The subscriber growth, though positive, failed to offset worries about margin pressures and the $23 billion spectrum acquisition’s long-term impact.

Telecom Sector Volatility as Verizon (VZ) Also Slides
The telecom sector faces crosswinds as Verizon (VZ) declines 2.09% alongside AT&T’s drop. Both stocks are pressured by broader industry challenges, including fixed-wireline revenue declines and competitive pricing wars. T-Mobile’s recent outperformance in 5G and fiber expansion highlights the sector’s fragmented dynamics, but AT&T’s subscriber gains and Verizon’s satellite partnerships with AST SpaceMobile suggest underlying resilience in wireless growth.

Bearish Options Play and ETF Positioning for AT&T’s Near-Term Volatility
• 200-day MA: $27.03 (below) • RSI: 31.16 (oversold) • MACD: -0.66 (bearish) • Bollinger Bands: $24.82–$28.74

AT&T’s technicals point to a short-term bearish bias, with the stock trading near its 200-day MA and RSI in oversold territory. Key support levels at $24.82 (lower Bollinger Band) and $26.07 (30D support) are critical for near-term direction. The options chain reveals aggressive put buying, particularly in the October 31 expiration cycle. Two top options for bearish exposure are:

• T20251031P25 (Put, Strike $25, Expiry 10/31): IV 30.32%, Leverage 82.11%, Delta -0.35, Theta -0.024, Gamma 0.29, Turnover 68,696
- High liquidity and moderate delta position this put to profit from a 5% downside move (projected price $24.13), yielding a $0.87 payoff.
• T20251031P25.5 (Put, Strike $25.5, Expiry 10/31): IV 33.12%, Leverage 43.89%, Delta -0.50, Theta -0.028, Gamma 0.29, Turnover 63,820
- Strong gamma and theta suggest rapid payoff decay if the stock rallies, but a 5% downside scenario (ST $24.13) generates a $1.37 payoff. High turnover ensures ease of entry.

Aggressive bears may consider T20251031P25 into a breakdown below $24.82, while T20251031P25.5 offers a balanced risk-reward for a 2–3% move. Watch for a close below $24.32 (intraday low) to confirm bearish momentum.

Backtest AT&T Stock Performance
To run the event-driven back-test precisely, I need to pin down a couple of details about what you mean by a “-2 % intraday plunge”.1. Event definition a. Close-to-close: The stock’s closing price is ≥ 2 % lower than the prior day’s close. b. Open-to-low: The day’s intraday low is ≥ 2 % below that day’s opening price. c. Something else (please specify).2. Any risk-control rules you’d like applied when simulating trades after the event? • Fixed stop-loss or take-profit? • Maximum holding days? • Maximum drawdown limit?3. Holding-period logic • Should we test a fixed holding period after each event (e.g., 1, 5, 10 trading days)? • Or let the position run until a stop-loss / take-profit is hit?Once I have these clarifications, I can pull the required price data, detect the event dates, and run the event back-test from 2022-01-03 (first trading day of 2022) through 2025-10-22.

AT&T’s $24.82 Support Test: Buy the Dips or Exit the Dip?
AT&T’s near-term trajectory hinges on its ability to hold above $24.82, the lower Bollinger Band and key technical support. A breakdown would validate bearish sentiment, while a rebound above $26.07 could reignite investor confidence in its subscriber-driven recovery. With Verizon (VZ) down 2.09% and the sector under pressure, AT&T’s Q3 earnings reaction and October 22 earnings report will be pivotal. Aggressive traders may short T20251031P25 if $24.82 breaks, while longs should watch for a bounce above $26.78 (middle Bollinger Band).