Options Trading News

September 23, 2016  Fri 7:16 AM CT


Traders are looking for Royal Caribbean Cruises to rebound by Thanksgiving.

optionMONSTER's monitoring system detected the purchase of more than 2,100 November 70 calls for $3.05 to $4.05 yesterday. This represents fresh buying, as open interest in the strike was just 60 contracts before the trades appeared.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

RCL rose 4.61 percent to $70.99 yesterday but is down 11 percent in the last three months. The cruise-line operator reported bearish results on Aug. 2 and is expected to release its next earnings numbers in pre-market hours on Oct. 20.

Overall option volume was 3 times greater than average in the name yesterday. Calls outnumbered puts by a bullish 3-to-1 ratio.

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