Options Trading News

December 7, 2012  Fri 11:23 AM CT

Put selling tops today's option activity in Royal Caribbean as shares trade near 52-week highs.
More than 5,400 RCL options trade in total, about 3 times its daily average, and almost all of the trading was in one strike. optionMONSTER systems show that 4,000 March 34 puts were sold in one print for $2. Open interest was just 178 contracts at the beginning of the day, so this clearly is a new position.

The put selling is based on the thesis that RCL will hold above $34 in coming months. That price has been support for the last couple of weeks, but shares were down at $33 in mid-November and below $24 in July. (See our Education section)

Shares of RCL are up 0.66 percent to $35.06 this afternoon. The cruise-line operator posted a 52-week closing high of $35.25 last week.
Share this article with your friends

Related Stories


Puts targeting Royal Caribbean

November 27, 2015

Traders are protecting against a pullback through early next year for the cruise-line operator, which is down 7 percent in the last month.



The fastest money in the market
View full report »

Premium Services

Education & Strategy

The art of trading

As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »