September Could Prove Choppy for Carnival Stock

CCL has already shed more than 50% this year

Digital Content Manager
Aug 29, 2022 at 3:06 PM
facebook twitter linkedin

The shares of Carnival Corp (NYSE:CCL) are flat this afternoon, last seen trading at $9.98. The stock has been chopping around below the $11 level for several months now, with a more than 50% year-to-date deficit under it's belt. And now, there's evidence suggesting CCL could chop even lower heading into September, if history is any indicator.

This is because Carnival stock just came within one standard deviation of its 80-day moving average after a lengthy period below the trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, there have been five similar instances in the past three years. One month after 80% of these occurrences, CCL was lower, averaging an 11.6% drop during this time period. A similar move from its current perch would put the equity at $8.82 -- dangerously close to its June 30, two-year low of $8.10. 

ccl aug 29

Analysts have been hesitant on CCL, but a further shift could create even more headwinds. Of the 14 in coverage, three still say "strong buy." Plus, the 12-month consensus price target of $13.92 is a 39.5% premium to current levels. 

An unwinding of optimism among options traders could add additional pressure as well. The equity sports a 10-day call/put volume ratio of 4.19 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 93rd percentile of its annual range. In other words, options traders are picking up calls at a much quicker-than-usual clip. 


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners