Q2 STOCKS TO BUY

Comcast Options Bulls Move In After Blowout Earnings

Comcast's effective COVID-19 response resonated with customers

Digital Content Manager
Jul 30, 2020 at 11:07 AM
facebook X logo linkedin


The shares of Comcast Corporation (NASDAQ: CMCSA) are up 0.3% at $44.03 this morning, so far immune to the broad market selloff today. This is likely because the telecommunications conglomerate reported fiscal second-quarter profits of $0.69 per share on $23.72 billion, much higher than Wall Street's estimates of $0.55 on $23.57 billion. The company attributed the strong results to a growing number of broadband subscribers, as well as an effective COVID-19 response that resonated with customers.

On the charts, Comcast stock has been working to recover from its late-March two-year trough near the $31 level. And while CMCSA has received support from its 10-day moving average over the last couple of weeks, it still has to reclaim its year-to-date breakeven level, and a ways to go before reaching its pre-pandemic high of $47.74 on January 17. Nonetheless, the equity is up 13.1% quarter-to-date.

Analysts were optimistic toward Comcast stock coming into today, with 12 of the 19 in coverage sporting a "buy" or better rating, while the remaining seven carried a tepid "hold." Meanwhile, the equity's 12-month consensus price target of $45.60 is a 4.8% premium to current levels.  

That sentiment is not echoed in the options pits, where puts are preferred. CMCSA sports a 10-day put/call volume ratio of 1.18 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 92nd percentile of its annual range. This suggests a healthier-than-usual appetite for bearish bets over the past two weeks.

Today's options activity shows calls overwhelming puts, however. So far, 4,084 calls have crossed the tape, which is more than twice the amount of puts traded. Most popular is the monthly August 47 call, followed by the weekly 07/31 44-strike call. 

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter