Carnival Corp Options Open Up New Financial Opportunities for Investors
New Contracts from Carnival Corp Spark Interest
Investors in Carnival Corp (Symbol: CCL) now have access to new options set to expire in March 2025. With 101 days remaining until expiration, these recently launched contracts may provide a chance for sellers of puts or calls to gain better premiums compared to those expiring sooner.
Stock Options Channel has examined the CCL options chain and highlighted one put and one call contract that stand out. The put contract at the $24.00 strike price is currently bid at 76 cents. Selling this put contract means committing to buy the stock at $24.00, while collecting the premium. This brings the effective cost basis down to $23.24, a compelling option for anyone looking to buy CCL shares priced at $25.79 each today.
Discount Insights and Expiry Chances
The $24.00 strike price represents about a 7% discount to Carnival’s current trading price, meaning it is out-of-the-money by this percentage. Currently, there is a 67% probability that the put contract will expire worthless, according to various analytical data, including greeks and implied greeks. Stock Options Channel aims to monitor these odds over time, providing updates on their website, which could inform strategic trading decisions. If the put expires worthless, the premium represents a 3.17% return on the investor’s initial commitment, equating to an annualized return of 11.45%, a concept we refer to as YieldBoost.
Below is a chart exhibiting Carnival Corp’s trading history over the last twelve months, with the $24.00 strike clearly marked:
Potential Rewards on the Call Side
Switching to the call options, the contract at the $28.00 strike price is presently bid at 84 cents. If an investor buys CCL stock at the current rate of $25.79 per share and sells this call as a “covered call,” they commit to selling at $28.00. Incorporating the premium into the equation could yield a total return of 11.83%, assuming the stock is called away at the March 2025 expiration. However, investors should consider that significant gains could be missed if the stock substantially rises, emphasizing the importance of reviewing both historical trading data and the company’s fundamentals.
Here’s a chart illustrating CCL’s trading history, highlighting the $28.00 strike:
Understanding the Financial Landscape
The $28.00 strike is approximately 9% above the current trading price, presenting a chance that the covered call could also expire worthless. If that occurs, investors would retain their shares plus the premium received. The odds of this happening are estimated at 58%. Stock Options Channel plans to monitor these percentages over time and will keep a comprehensive chart of option trading history on their website. Should the covered call expire without executing, the premium would yield a 3.26% additional return or an annualized rate of 11.78%, another aspect of the YieldBoost metric.
Implied volatility rates stand at 49% for the put option and 45% for the call option. Currently, our calculations reveal the actual trailing twelve-month volatility to be 42%, based on the last 251 trading days and the current price of $25.79 per share. For further insights into additional put and call options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
