Stock / Symbol: Comcast / CMCSA
Option Strategy: diagonal call spread
Price at trade post: $20.85
Reasoning: [private_monthly]CMCSA[/private_monthly] is a defensive stock in this turbulent market. It will likely outperform in a down market and underpeform when the bulls are running. We believe that technically, the stock has support at the $20 level, and we expect the stock to be in the $22 range by it's ex-dividend date (Oct 3rd), which is when we plan to close it out.
Trade Details:[private_monthly]
BTO 5 CMCSA JAN12 20 Calls
STO 5 CMCSA OCT11 21 Calls
for a net debit of $1.30 per contract (GTC, limit order)
Requirements:
Cost/Proceeds $650.00
Option Requirement $0.00
Total Requirements $650.00
Estimated Commission $12.95
[/private_monthly]
Max Risk: $650
Profit Range: $19.60 - $24.20 (Oct11 exp)
Max Profit: $400 or 61.5% @ $21 by Oct exp
Suggested Downside Stop: @ $19.50
Suggested Upside Stop: @ $23
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