Comcast trading 16% below high, yields 8.1% via $20 puts
At $27.50 share price, Comcast trades 16% below its 52-week high and investors can earn 8.1% annualized yield by selling March 19, 2027 $20-strike puts collecting $74 premium and earning 4.0% on collateral. Comcast generated $19B free cash flow last 12 months and rolled out Xfinity internet in Bloomsburg, PA.
1. Option Income Strategy
At $27.50 per share and 16% below its 52-week high, Comcast’s stock offers option-based income via selling March 19, 2027 $20-strike puts. Collecting roughly $74 premium per contract yields 4.1% annually on the collateral, with an additional 4.0% from money market earnings for a total 8.1% target yield.
2. Free Cash Flow Generation
Comcast produced $19 billion of free cash flow over the trailing 12 months, driven by its broadband near-monopoly and predictable subscription revenues. Peacock’s subscriber growth and NBCUniversal’s ad revenue optionality further support the company’s cash generation profile and long-term valuation stability.
3. Bloomsburg Market Launch
Comcast has begun offering Xfinity high-speed internet service in Bloomsburg, Pennsylvania, expanding its network footprint and reinforcing its local broadband leadership. This rollout underscores the company’s continued infrastructure investment to capture new subscribers in under-penetrated markets.