Price Forecast:

Bullish Case: Despite ongoing challenges, Comcast's spin-off will streamline operations, potentially enhancing profitability and restoring investor confidence, as indicated by recent stock performance and bullish sentiment from call options.

Bearish Case: Continued subscriber losses and heightened competition in the streaming market could constrain growth, undermining Comcast's recovery efforts and maintaining downward pressure on the stock as market sentiment remains cautious.

Potential Outcomes:

• 40%: Successful spin-off leads to increased shareholder value.
• 30%: Regulatory challenges hinder growth strategies.
• 20%: Persistent strong competition in streaming erODES subscriber base.
• 10%: Stark decline in advertising revenue across cable networks.

Trading Oracle: Consider a bullish strategy using a debit call spread: buy CMCSA 44.5 calls, sell 45.0 calls for November expiration. This captures potential upside from the spin-off news while minimizing risk exposure, with market implied volatility indicating adequate potential for upside movement.

November 22, 2024