Comcast (CMCSA) could be nearing a short-term bottom. I have 300 shares from puts that were assigned to me a month ago. I sold covered calls on all of them and watched them blow past my strike soon thereafter. They posted what seems like good earnings yesterday, but apparently the masses didn’t like the news as it has slumped since. Looking at the chart below I circled a few key points that seem to show possible support. There’s a rising trendline that I first saw using a OHLC chart and then when I zoomed in I saw that it bounced off of its 50 day moving average before closing the day in the middle of its trading range. I’ll be watching it closely over the next weeks to see if I find an opportunity to buy back my weak puts for a profit and gain more on the rising stock price. I’m sitting a little below break even on the whole series of trades from originally selling the naked puts, buying the stock and selling the covered calls. If I can hold onto CMCSA through May 18th, I’ll have an opportunity to move to the positive side with a new batch of covered calls.
Click on the thumbnail for a full chart.
Funny day in the end, I figured we were sure to have a down day after the inflation news and the futures were way down. I ended up finishing the day up $176 on no trades, just growth and time value.