The company will launch test cruises from Miami in late June
The shares of Royal Caribbean Cruises Ltd (NYSE: RCL) rose 2.8% to $ 91.51 on the latest review after the Centers for Disease Control and Prevention (CDC) allowed the company to conduct test cruises from Miami in late June. The tests are required for ships that cannot ensure that all passengers and crew are vaccinated against Covid-19 and will sail with volunteer passengers to test new virus protocols, including coronavirus tests.
On the charts, the stock has seen some choppy waters since hitting an annual high of $ 99.23 on Feb.25. However, stocks have just broken overhead pressures at the $ 88 mark that has been in place since late April. Equity has also regained support to its 100-day moving average, up more than 84% year-over-year.
Analysts remain bearish on Royal Caribbean Cruises stock, with seven of the twelve reporting a “Hold” or lower rating, while five say “Strong Buy”. In other words, the stock could go higher if some of that negative sentiment unfolds.
The option pits are far more optimistic, with calls growing in popularity. This corresponds to the stock’s 10-day call / put volume ratio of 2.58 on the International Securities Exchange (ISE), the Cboe Options Exchange (CBOE), and the NASDAQ OMX PHLX (PHLX), which are in the 96th percentile of their annual Bandwidth is.
With that in mind, Royal Caribbean Cruises stock’s normally quiet option pits are teeming with bullish activity today. So far, 6,955 calls have been exchanged in the first hour of trading, which is twice the intraday average. The most popular is the monthly call of June 100, followed by the weekly 5/28 call with 91 strikes, which is currently opening new positions.
Now seems like a good time to bet on RCL’s next move with options. The stock’s 44% Schaeffer Volatility Index (SVI) is above just 2% of all other values from last year, suggesting option players are currently pricing in lower than usual volatility expectations – a boon for premium buyers.