Comcast Corporation (CMCSA) Bulls Drawn By New Venture

Comcast Corporation's (CMCSA) weekly 4/2 and 4/10 56-strike calls are hot today

by Karee Venema

Published on Mar 31, 2015 at 11:09 AM
Updated on Jun 24, 2020 at 10:16 AM

Speculators have displayed a growing preference for long calls over puts in Comcast Corporation's (NASDAQ:CMCSA) options pits of late. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 10-day call/put volume ratio has jumped to 1.94 from 0.47 over the past week. What's more, the current ratio ranks in the 61st annual percentile, indicating calls have been bought to open over puts at a slightly faster-than-usual clip.

It's a similar set-up in today's trading, with calls changing hands at 1.6 times what's typically seen at this point in the day, and outpacing puts by a more than 7-to-1 margin. Traders have set their sights on the $56 mark, with buy-to-open activity detected at CMCSA's weekly 4/2 and 4/10 56-strike calls. By initiating these long calls, speculators expect the stock to extend its lead north of the strike by the respective expiration dates.

At last check, the equity was 0.2% higher at $56.71. This just echoes the security's longer-term prowess, up 13.6% over the past 52 weeks. Helping the stock higher has been its 160-day moving average -- a trendline that has served as a springboard for CMCSA during a handful of its previous pullbacks, including at the end of last week and earlier today.

Daily Chart of SCTY CMCSA Since March 2014 With 160-Day Moving Average

Off the charts, Comcast Corporation (NASDAQ:CMCSA) announced it is creating a new investment company to be headed by its current Chief Financial Officer Michael Angelakis -- leaving CMCSA on the hunt to fill the position. Separately, a big acquisition unveiled earlier today is contingent upon U.S. regulators approving the proposed merger between CMCSA and Time Warner Inc (NYSE:TWX).


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