Comcast attracts range-bound strategy

optionMONSTER

Comcast is just off its 10-year highs from last week, but a large trade is looking for its shares to stay range-bound.

CMCSA is up 0.5 percent at $30 even after hitting a decade-long high of $30.41 last week and is now facing resistance going back to 2000. Shares of the cable giant are up an impressive 43 percent in the last four months.

More than 6,000 each of the May 31 calls and May 28 puts have traded, according to optionMONSTER's systems. The big blocks of 5,000 went off at the same time with the calls traded for $0.48 and the puts for $0.34.

It appears that both the calls and puts were sold in a short strangle . This strategy would take in $0.82 of premium, which would be the profit if CMCSA is between the two strikes at expiration. (See our Education section)

The implied volatility of the May options is roughly 23 percent, while the 30-day historical volatility is 15 percent.

More From optionMONSTER

Rates

View Comments (0)