Comcast Corporation, famous for NBCUniversal and Xfinity, is reaching an important technical moment for swing traders. The stock has dropped almost 40% from its earlier price of $45 this year and is now close to the support zone at $26.54—an important level from previous market cycles. This support level has been a key battleground for buyers and sellers during tough market times like in 2022 and early 2023. The chart shows a smart two-tiered entry plan: starting at $26.54 and adding at $23.87 for a better risk-reward balance. If the stock dips below $23.87 with heavy trading volume, it could signal weakness and lead to a reassessment of the company’s future. On the other hand, if it stays above $26.54, we might see a rally toward the $30-32 resistance area, which would be a 15% potential gain. Watching the trade volume is crucial to spotting market bottoms through tightening price ranges and signs of selling exhaustion. Traders should consider starting their positions at $26.54 and reevaluate if the price gets near $23.87. A weekly close below $23.50 would suggest a test of lower support levels. This situation calls for patient trading, keeping in mind Comcast’s strong infrastructure while adjusting expectations for a slow recovery. As Comcast stock approaches the key $26.54 support level on October 31, 2025, this moment is significant for options trading. The sharp drop from $45 has already accounted for a lot of negative news, creating a clear threshold. This setup allows for strategies with defined risks, instead of merely guessing where the bottom is. For those feeling optimistic, selling cash-secured puts at or slightly below this support level, like the November $26 or December $25 puts, makes sense. This strategy enables us to collect premium and shows a willingness to buy the stock at a lower price if the support fails—drawing in institutional buyers and dividend investors. Despite the stock’s tough performance, the fundamental outlook remains cautiously optimistic. The latest Q3 earnings report showed that we lost 50,000 broadband customers due to fixed wireless competition, but this was expected. The market has been reacting negatively to this trend all year, indicating it may now be fully accounted for. Moreover, the company’s other areas are strong. Our Peacock streaming service gained 3 million more paid subscribers last quarter, and theme park revenue increased by 8% year-over-year. This diversification means the company has other avenues for growth, even as the cable business matures. If the $26.54 support holds, but then breaks, we can adjust the strategy instead of giving up. We could look to the next support level around $23.87, possibly rolling any existing short puts down to a lower strike like $24 to collect more premium. This is similar to adding to a stock position at a better price, but with the added benefit of generating income. For those with a bearish outlook, the trade is clear. If the stock closes decisively below $23.87 on heavy volume, the support theory falls apart. In that case, buying puts with strikes around $23 or $22 would be a logical way to bet on a further decline towards historical lows from 2021. The implied volatility is high around these technical points, which boosts option premiums. This is good for premium sellers and signals that the market anticipates a significant move soon. Volume will be crucial; we need to determine whether selling pressure normalizes or intensifies in these areas. Currently, there’s a clash between a weak technical chart driven by subscriber fears and the tangible value based on strong cash flow. Reflecting on similar periods of consolidation in 2022 and 2023, these levels have been important turning points. The next few weeks will show whether history will repeat itself.

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