Comcast (CMCSA) Option Trade

Last week CMCSA fell after earnings were announced and I wrote about my potential trade on it.  While CMCSA was trading at 25.84 this morning, my limit hit that I entered five days ago for four September 25 puts (CCQUE).  I received $287 after commissions. I wrote it far OTM because I expected the slide to continue for a few days and find its footing near the trend line of higher lows that started in late February and also includes the highs from almost a year ago in August.  In the chart below, that line started at point A.  That trend line this morning which moves my target to the two red lines that meet near 25.  With the increased subscribers Comcast has and the cash flow they produce, I think 25 range should hold for strong support, just as it did in late February when we last experienced a mini-correction.

Click the thumbnail for a full sized chart.

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