OptionsHouse

Options Trading News

April 19, 2013  Fri 10:42 AM CT

CMCSA: SEE CHART GET CHAIN FIND STRATEGIES
As Comcast shares bounce today, one trader apparently believes that any downside will be limited.

optionMONSTER systems detected the sale of 4,166 May 39 puts today for the bid price of $0.70. This is clearly a new position, as the volume is more than 4 times higher than the strike's open interest of just 932 contracts before the session began.

The put selling is a bet that CMCSA will hold above $39 in the next month. The trader will face the obligation to buy shares if they fall below that strike price. (See our Education section)

CMCSA is up 0.83 percent to $40.32, a day after posting its lowest close since March 1. The cable giant, which reached a high of $42.61 at the start of the month, was last below $39 before its earnings report on Feb. 12. 
Share this article with your friends


OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »