Pre-Earnings Skepticism Builds On Carnival Corporation (CCL)

Carnival Corporation will unveil its fourth-quarter earnings report ahead of Friday's open

Dec 17, 2014 at 10:22 AM
facebook X logo linkedin

Carnival Corporation (NYSE:CCL) will take its turn in the earnings spotlight ahead of Friday's open, and option traders have been banking on a negative reaction to the company's quarterly report. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), for example, CCL's 10-day put/call volume ratio of 1.09 ranks in the 72nd annual percentile. Simply stated, puts have been bought to open over calls at a faster-than-usual clip in recent weeks.

It was a trend witnessed yesterday, with puts crossing the tape at 3.6 times the average daily rate -- and outpacing calls by a nearly 2-to-1 margin. Buy-to-open activity was detected at CCL's December 43 put, where 4,104 contracts were traded. By initiating these long puts, speculators expect the stock to be sitting south of the strike at week's end, when front-month options expire.

Tuesday's options bears were dealt a blow today, though, with the stock up 2.6% at $44.26, following a price-target hike to $50 from $46 -- and a reiterated "positive" rating -- at Susquehanna, and a new "buy" recommendation and $60 price target from Buckingham. This positive price action only echoes the equity's recent trajectory, with Carnival Corporation (NYSE:CCL) rallying 34% from its mid-October annual low of $33.11, thanks to a lift from its 20-day moving average. Should the shares fail to finish the week below $43, though, the most yesterday's put buyers stand to lose is the initial premium paid.


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