With the increase in Covid-19 cases in warm weather states, the reopening of the cruise industry could be delayed, writes Jay Soloff
Options activity has been brisk lately, with traders showing concern over the recent news of Covid-19's resurgence in several warm-weather states. Cruise line stocks had recovered quite a bit in recent weeks but could be in trouble again in the coming weeks. It now looks like U.S. cruises won't resume until September, with data showing Coronavirus cases are spiking.
Options traders also seem to be taking bearish positions in companies like Carnival (CCL), with substantial volume in recent days (especially in puts). One big options trader appears to be using a put spread to bet on a drop in the CCL share price in the next month.
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Jay Soloff is the Options Portfolio Manager at Investors Alley. He is the editor forOptions Floor Trader, an investment advisory bringing you professional options trading strategies, with all the bells and whistles of Wall Street, but simplified so all you have to do is enter the trades with your broker. Want to Learn Butterflies and Condors? Join Me for a Live Training Session on Monday.Click here for more.
