OptionsHouse

Options Trading News

October 18, 2012  Thu 10:53 AM CT

CMCSA: SEE CHART GET CHAIN FIND STRATEGIES
As Comcast trades at another all-time high today, one strategy is looking for the cable stock to move sharply higher or lower.

A trader bought 9,980 April 34 puts for the ask price of $1.14, according to optionMONSTER's Depth Charge system. Open interest in the strike was just 146 contracts at the start of the session, so the puts are seeing fresh buying.

Less than two minutes after they were purchased, however, the largest block of CMCSA stock traded as 289,420 shares were bought for $37.5328. That would balance the delta of the puts and create an overall position that is a long volatility play, looking for CMCSA to spike in either direction and/or for the actual volatility to be greater than that implied by the options.

CMCSA is up 1 percent to $37.50. Shares bounced off support at $35 last week and have been trending steadily higher from their 52-week of $20.90 set at the end of November.
Share this article with your friends


Related Stories

CMCSA

Short-term calls look for pop in Comcast

April 28, 2016

The cable giant is trading higher after announcing plans to acquire DreamWorks in a $3.8 billion deal, and traders are looking for more gains by the end of next week.

CMCSA

Comcast puts show caution before report

April 22, 2016

The cable operator has risen 12 percent in the last three months, but traders are buying June puts ahead of quarterly results next week.

OptionsHouse

Premium Services

Education & Strategy

Market Level Making You Nervous, Huh? Part 3

In last week's article, we discussed how important the extra cash you save by using the Stock Replacement Strategy over buying the actual stock is! That extra cash in our account instead of being unnecessarily tied up in a stock position allows us to buy the puts we would need to protect our downside in the case of a major sell-off.

View more education articles »