Luxury Cruise Stock Upgraded on Strong Bookings

Options bulls are blasting the equity today

Digital Content Manager
Sep 20, 2022 at 10:36 AM
facebook X logo linkedin

Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) is up 2.4% to trade at $15.69 at last check, after Truist Securities upgraded the equity to "buy" from "hold," and hiked its price target to $19 from $18. The analyst in coverage praised the company's significant increase in bookings, which grew 30% in the last three weeks of August and first week of September, amid easing pandemic-related restrictions. Plus, the firm noted Norwegian is set benefit from strength in luxury cruises.

The brokerage bunch was skeptical of NCLH coming into today, with six of 10 analysts in coverage calling it a tepid "hold." Plus, the 37.48 million shares sold short still make up 9% of the stock's available float, despite short interest falling 12.7% in the last two reporting periods. This leaves plenty of room for additional upgrades and a potential short squeeze.

The security has been chopping higher on the charts since hitting a June 16, two-year low of $10.31. The 40-day moving average emerged as a level of support in in early August, and has contained a handful of the stock's pullbacks since. Year-to-date, though, NCLH remains down 25.6%.

An unwinding of pessimism in the options pits could give the shares a boost. This is per NCLH's Schaeffer's put/call open interest ratio (SOIR) of 1.60, which ranks higher than 94% of annual readings. This means short-term options traders have rarely been more put-biased. 

It looks as though that shift may already be in motion, too. So far today, 43,000 calls and 14,000 puts have been traded, or nine times the average intraday volume. Most popular is the weekly 9/30 17-strike call, followed by the weekly 10/7 17.50-strike call, with new positions being opened at both.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI