Comcast Corporation, known for NBCUniversal and Xfinity services, is nearing a crucial technical point for swing traders. The stock, which has dropped nearly 40% from $45 earlier in the year, is approaching the support zone at $26.54, a key level in past market cycles.

This support level has acted as a battleground for buyers and sellers during stressful market periods like in 2022 and early 2023. The chart suggests a strategic two-tiered entry, with $26.54 as the initial point and $23.87 as a more defensive add zone for enhancing risk-reward dynamics.

However, should the stock fall below $23.87 with substantial volume, it indicates potential weakness and a possible fundamental re-evaluation of the company’s prospects. Conversely, maintaining above $26.54 could spark a rally to the $30-32 resistance area, presenting a 15% potential move.

Monitoring trading volume is vital to identify bottoms through narrowing price ranges and selling exhaustion. Traders should consider scaling in, starting at $26.54, and reassess if the price approaches $23.87. A weekly close below $23.50 would suggest testing lower support zones. The scenario favours patient trading, acknowledging Comcast’s strong infrastructure but adjusting expectations for a measured recovery.

As Comcast stock tests the critical $26.54 support level on October 31, 2025, we should see this as a defined moment for option plays. The sharp decline from $45 earlier this year has priced in a lot of bad news, creating a clear line in the sand. This setup allows for strategies with well-defined risk, rather than simply guessing a bottom.

For those leaning bullish, selling cash-secured puts with a strike price at or slightly below this support, like the November $26 or December $25 puts, makes a lot of sense. This strategy allows us to collect premium while expressing a willingness to own the stock at an even lower cost basis if the support fails. It directly plays on the idea that institutional buyers and dividend investors might step in here.

The fundamental picture supports this cautious optimism, despite the stock’s poor performance. While the most recent Q3 earnings report showed we lost another 50,000 broadband customers to fixed wireless competition, this was an expected headwind. The market has been punishing the stock for this trend all year, suggesting it may now be fully priced in.

On the other hand, the company’s other segments are providing a solid foundation. Our Peacock streaming service added another 3 million paid subscribers last quarter and theme park revenue continues to show impressive strength, up 8% year-over-year. This diversification suggests the company has other levers for growth even as the cable business matures.

If the initial $26.54 support level breaks, the strategy can be adjusted rather than abandoned. We can look to the second support level around $23.87, potentially rolling any existing short puts down to a lower strike like $24 to collect more premium. This mirrors the plan of adding to a stock position at a better price, but with the added benefit of income generation.

For a bearish stance, the trade is just as clear. A decisive weekly close below $23.87 on heavy volume would invalidate the support thesis entirely. In that scenario, buying puts with strikes around $23 or $22 would be the logical way to position for a continued slide toward lower historical lows from back in 2021.

Implied volatility is elevated around these technical levels, making option premiums richer. This benefits premium sellers but also signals that the market is expecting a significant move in the coming weeks. Volume will be the key indicator; we need to see if selling pressure exhausts itself or accelerates through these zones.

The current situation is a battle between a weak technical chart driven by subscriber fears and a tangible value proposition based on strong cash flow. Looking back at similar consolidation periods in 2022 and 2023, these levels have proven to be significant inflection points. The next few weeks will reveal if history is set to repeat itself.