This morning, AT&T (T: sentiment, chart, options) announced that it won a 5-year communications services contract with Royal Dutch Shell worth up to $1.6 billion. Under the terms of the deal, AT&T will provide managed network services to Shell and its subsidiary companies in more than 100 countries. T will also provide direct connectivity to 1,500 Shell corporate and operating unit locations. The agreement represents AT&T's largest contract win to date with a company headquartered outside the U.S.

The shares are poised to jump slightly higher this morning on the positive news. The stock has recently consolidated into support at its rising 10-day moving average. However, the security is poised to log its second consecutive monthly close below its 10-month and 20-month moving averages. T will need to close today above $38 to reclaim its 20-month trendline and finish above $40 to settle above its 10-month moving average.

Sentiment is mixed toward the telecom giant. Wall Street is smitten with the shares, as 15 of the 26 analysts following T rate it a "buy" or better. However, options players aren't quite so optimistic. Schaeffer's put/call open interest ratio for T comes in at 0.95, which is higher than 82% of all those taken during the past 52 weeks. As it stands, there isn't a lot of room for upgrades from Wall Street, but the options players could still jump on the stock's bandwagon.