Investors in Carnival Corporation Ltd (CCL) saw new options begin trading on October 3, 2023, for the June 2027 expiration. Notably, a put contract with a strike price of $27.00 currently has a bid of $3.75, allowing investors to potentially lower their cost basis for shares from the current price of $30.49 to $23.25, representing an 11% discount. If the put expires worthless, it offers a 13.89% return on the cash commitment.
On the call side, a contract at a $32.00 strike price has a bid of $5.55. Purchasing shares at $30.49 and selling this call would yield a total return of 23.16% if the stock is called away by expiration. The current data suggests a 40% chance the call contract could expire worthless, allowing the investor to keep both the shares and premium collected, representing an 18.20% additional return. Implied volatility for the put is 62%, while for the call, it’s 58%.
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