Comcast (CMCSA, news, chart, volatility) is seeing bearish order flow Monday morning. Shares are down $1.57 to $19.13 after Oppenheimer downgraded Sprint (S) and CMCSA to Underperform from Perform. The firm says to avoid consumer communications stocks as the group is facing a cyclical slowdown that reflects increased supply and slowing consumer demand. In the options market, CMCSA volume is running 700 percent the normal, with 12,000 puts and just 140 calls traded. The October 20 and November 20 puts are the most actives, with almost 12,000 traded and roughly 90 percent hitting on the offer. Active buying interest is pushing up implied volatility to 50 percent, up 13 percent on the session. The company is due to report earnings on October 29.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.