Cruise Stock Presents Attractive Buying Opportunity

Royal Caribbean Cruises Ltd (NYSE:RCL) stock recently pulled back to a potential support level within the context of a long-term uptrend, as defined by its January closing high at $274 – which is near double major twin peaks in 2018 and 2020 – and the rising 12-month moving average. The latter has also provided excellent buying opportunities for the shares since 2023.

 

 
The security is outperforming the S&P 500 Index (SPX) in 2025 with a 24% lead, even after the cruise giant issued a dismal fiscal fourth-quarter profit outlook that sparked several earnings revisions lower, setting a lower expectation bar moving forward. It’s also worth noting that the 270-strike is the first area where puts dominate, following a post-earnings pullback from the call-heavy 320-strike.
 
Implied volatility (IV) on January options is in line with 63-day historical volatility (HV). What’s more, it would take short sellers more than five sessions to cover their bearish bets, which could provide a floor for RCL as it trades into long-term support.
 
Our recommended January 16, 2026 call has a leverage ratio of 6.30 and will double on a 16% rise in the underlying equity.