Trade of the Week: Carnival | Investors Alley

Trade of the Week: Carnival

June 23, 2020 6:15 am by Jay Soloff

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Options activity has been brisk lately, with traders showing concern over the recent news of COVID-19’s resurgence in several warm-weather states. Cruise line stocks had recovered quite a bit in recent weeks, but could be in trouble again in the coming weeks.

It now looks like US cruises won’t resume until September, with data showing COVID cases are spiking. Options traders also seem to be taking bearish positions in companies like Carnival (CCL), with substantial volume in recent days (especially in puts). One big options trader appears to be using a put spread to bet on a drop in the CCL share price in the next month.

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