52-Week High Alert: Trading today’s movement in CARNIVAL $CCL

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Quantchabot has detected a promising Bull Put Spread trade opportunity for CARNIVAL (CCL) for the 9-Apr-2021 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

CCL was recently trading at $30.46 and has an implied volatility of 62.09% for this period. Based on an analysis of the options available for CCL expiring on 9-Apr-2021, there is a 34.16% likelihood that the underlying will close within the analyzed range of $30.46-$32.03 at expiration. In this scenario, the average linear return for the trade would be 101.65%.

52 week high: CARNIVAL recently reached a new 52-week high at $30.51. CCL had traded in the range $9.14-$30.12 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if CCL maintains its current direction and does not revert back to pricing on the bearish side of $30.46 on 9-Apr-2021. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if CARNIVAL closes at or above $30.44 on 9-Apr-2021. Based on our risk-neutral analysis, there is a 50.50% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.