A big company called Comcast is having a lot of people trading parts of its stock, which are called options. This article talks about what we need to know about this situation. The price of Comcast's stock is going down a little bit and some experts think it might be too high. There will be another report on how well the company is doing in 27 days. Some people who study the market say that trading options can be risky but also make more money. They suggest learning more, using tools to help, and paying attention to what's happening in the market. Read from source...
1. The article is not objective and impartial. It uses subjective language such as "frenzy", "may be approaching overbought" without providing any factual evidence or data to support these claims.
1. Buy CMCSA at a price of $37.5 or lower, as it is close to its 50-day moving average and has strong support from the bulls. The stock is also trading within a range of $38.24 - $36.94, which indicates that there is still some room for upside before reaching resistance levels.
2. Set a stop loss at $36.5, as this would limit your potential losses in case the stock reverses direction and breaks below the support level.
3. Take profit at $41 or higher, as this would give you a nice return of 8.7% - 9.6% based on the average target price of $44. You can also adjust your take profit level depending on market conditions and news catalysts that may drive the stock higher.
4. Monitor the RSI value closely, as it is currently at 50.8, which is close to overbought territory. If the RSI goes above 70, you may want to consider taking some profit or scaling out of your position to avoid a possible pullback.
5. Pay attention to the earnings report and any other relevant news that may impact the stock price. Comcast is expected to report its next earnings on October 29th, so keep an eye on any announcements or rumors leading up to that date. This could potentially trigger a swing in the stock price either way.
6. Consider using options strategies such as covered calls, protective puts, or credit spreads to enhance your returns and manage your risk. These strategies involve selling additional contracts to generate income or reduce your cost basis, while still retaining the potential for profit or limiting your losses in case of adverse price movements. Consult with a professional options trader or do thorough research before implementing any of these strategies.