Broadcasting Stock Barred by Bear Note

Comcast's options are attractively priced at the moment

Deputy Editor
May 19, 2020 at 10:42 AM
facebook twitter linkedin

The shares of Comcast Corporation (NASDAQ:CMCSA) are down 1.1% to trade at $37.68 after a downgrade from Guggenheim to "neutral" from "buy." The analyst said it sees one of Comcast's primary units, NBCUniversal, as "particularly challenged" by the lasting effects of the pandemic on its theme park, filmed entertainment, and advertising businesses. 

Slow to rise on the charts since its two-year low of $31.70 on March 23, yesterdays gap higher gained on the 30-day moving average, which continues to act as support for today's pullback. Though the stock is still up 7.8% in the last week, it still sports a 15.3% year-to-date deficit. 

Most analysts were bullish on CMCSA coming into today, with 11 of the 18 in coverage sporting a "buy" or better, and the remaining seven giving it a tepid "hold" rating. Also, the 12-month consensus target price of $44.74 is a 17.5% premium to current levels. 

What's more, CMCSA's options are attractively priced at the moment. The stock's Schaeffer's Volatility Index (SVI) of 28% sits in the 12th percentile of its annual range, implying that near-term options traders are pricing in relatively low volatility expectations.



Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners