Volatility play in Royal Caribbean

optionMONSTER

A volatility play topped the option action in Royal Caribbean Cruises as shares hit a two-year high.

optionMONSTER systems show that a trader bought 4,000 January 39 puts for the ask price of $2.49. The previous open interest at that strike was just 266 contracts, so it is clearly a new position.

Less than a minute later, a single print of 175,000 shares of RCL was bought for $39.83. That matched the delta of the options position, creating a position that is looking for higher volatility and/or a move sharply higher or lower in either direction. (See our Education section)

RCL rose 1.53 percent to $39.79 yesterday, its highest close since May 2011. The cruise-line operator bounced off support at $32 in late June. 

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