Options News
$RCL bulls book gains
Bullish option traders have made exponential gains in Royal Caribbean Cruises (RCL). On Nov. 6, our Unusual Activity Service found that 2,500 November $62.50 calls were bought as part of a complex bullish spread for $1.89 to $1.94 above open interest of 1,846 contracts with shares at $58.24. Those calls were last marked for $11.90, roughly […]
Bullish option traders have made exponential gains in Royal Caribbean Cruises (RCL).
On Nov. 6, our Unusual Activity Service found that 2,500 November $62.50 calls were bought as part of a complex bullish spread for $1.89 to $1.94 above open interest of 1,846 contracts with shares at $58.24.
Those calls were last marked for $11.90, roughly 6 times their purchase prices. The stock rose 26.82% in the same time frame, underscoring how options can far outperform their underlying shares.
Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.
RCL was last down 2.13% to $73.86 today after spiking to a new 6-month high yesterday. The CDC issued a “conditional” sailing order for the resumption of U.S. cruise ship operations yesterday afternoon.