One investor expects a quick bounce from Royal Caribbean Cruises today, following a six-week decline.
optionMONSTER's Heat Seeker monitoring system detected the purchase of about 3,800 March 33 calls in volume far above the strike's previous open interest of just 847 contracts. The initial blocks priced for $0.63, followed by prints as high as $1.22.
Those long calls lock in a $33 purchase price on the cruise-ship operator but expire at the end of today's session, so the trade has an extremely short time horizon. That also made the options very cheap and creates the possibility of extreme leverage if the stock does rally. (See our Education section)
RCL rose 2.57 percent to $34.38 yesterday. It touched an 18-month high in late January but has been retreating since, partly because of a weak earnings forecast as the company continues to struggle with soft demand in Europe. Rival operator Carnival Cruises has seen similar declines, as seen on researchLAB's cruise-ship page .
Total option volume in RCL was quadruple the daily average yesterday, according to the Heat Seeker.
More From optionMONSTER
- Investment & Company Information
- Royal Caribbean Cruises