I bought a spread in Comcast.

music selection:  “A Million Miles Away” — Rory Gallagher

weigh-in:  219.0 +1.8 – The “quarantine 15” is approaching “20”.

Comcast is regularly voted the most hated corporation in America.  It is a reputation that is well deserved for customer service that could best be described s “abusive”.  I know, I’m a customer of theirs for internet.  You maybe hate them a little less if you have been a long term shareholder though.  While cord cutting is a real thing, the company has managed to reposition itself as a go to provider of fiber.  And they “hit their numbers”.  Management is obsessed with meeting quarterly targets (no matter how many customers they have to abuse to achieve it.)

I think the company makes for a good investment, even if their behavior is borderline criminal.  And during coronavirus, their internet offerings are more essential to the country than ever.  For this reason, I am buying a bull call spread at the 39/40 strikes and 28AUG2020 expiry today.  I bought 18 spreads for a net debit of 76 cents a share.  That puts 1,368 in capital at risk.  The trade has 4.49% downside protection before profits are threatened assuming the price of 41.88 as of this writing.  Should that not be breached, the full profit of 432 dollars will be earned.  That is good for a 32% return over 40 days or 372% annualized.

I was hopeful my price target of 15.75 on my long dated VXX puts would be hit today but it looks increasingly like I will fall just shy.  I expect to be rolling that trade soon though for some pretty spectacular gains.

Devour your prey raptors!

Comcast (CMCSA) spread with 372% yield

Never miss another opportunity to devour prey!

3 thoughts on “Comcast (CMCSA) spread with 372% yield

Leave a Reply

Your email address will not be published. Required fields are marked *


This site uses Akismet to reduce spam. Learn how your comment data is processed.