Few industries were hit as badly as cruise ships during the pandemic. However, after bottoming out more than a year ago, the value of CCL has more than tripled. And although the latest earnings report showed the company was absorbing a loss, booking volume was 90% higher than the previous quarter. That, coupled with the acceleration in vaccinations and expectations of strong demand this summer, resulted in a number of target price increases for analysts.

Stocks have pulled back from their 2021 high after earnings and failed to break triple-top resistance in the 30-31 range. The pullback has almost hit the 50-day ascending moving average, which is at the 27 level. The 50-day study supported previous withdrawals in February and March. When fundamentals turn cheap, look for support to keep the uptrend going.

CCL chart April 2021 - triple value

CCL Chart April 2021

If you’re okay with CCL continuing on its uptrend, consider the following trade, where the stock stays above $ 26 to expire in six weeks.

Buy to open CCL 28May21 24 Put (CCL210528P24)
Sale to open CCL 28May21 26 Put (CCL210528P26) for $ 0.65 balance (sale of a vertical)

This balance is $ 0.03 below the midpoint of the options spread when CCL was trading at $ 27. If the stock doesn’t recover quickly from here, you should be able to get close to that amount.

Your commission on this trade is only $ 1.30 per spread. Each spread would then be $ 66.70. This trade reduces your purchasing power by $ 200 and brings your net investment to $ 133.30 ($ 200 – $ 66.70). If CCL closes above $ 26 on May 28, both options will expire worthless and your return on the spread will be 50% ($ 67.70 / $ 133.30).

As with all investments, you should only trade options with money that you can really afford to lose.

Have fun trading,

Terry

Tags: Bullish Options Strategies, CCL, Monthly Options, Portfolio, Profit, Profits, Puts, Risk, Vertical Put Spread, Weekly Options

This entry was posted on Monday April 19th, 2021 at 2:16 pm and is filed under Last Minute Strategy, Monthly Options, Stock Option Trading Idea of ​​the Week, Weekly Options.



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