Summary
Comcast is a leading telecommunications giant with a stable free cash flow.
The stock is at a modest valuation of a forward P/E of 12.65, which shows very little future downside.
Investors can use this to their advantage by selling the July 2019 put options at $32.50 strike, which would yield a 4.8% return.
Comcast (CMCSA) is one of the largest telecommunications giants around. That is why many consider it to be a blue-chip company.
The stock has been trading at a favorable position over the last couple weeks. In fact, the 52-week range is between $31 and $44. As someone who enjoys selling options, I believe this provides investors seeking income an unique opportunity here.
With the stock currently at $35.43 (as of 1/7/19), I believe the premium of $1.57 provides a good risk adjusted return on a stable blue chip company.
