Carnival Call Options See Sell-Off, Tracking Slump in Stock Price

Shares fell 68.5 cents, or about 4% after the cruise line yesterday forecast a hit of as much as $10 million from the collapse of the Key Bridge in Baltimore Harbor, muddying the outlook for the full year. The downtrend came even after the company reported a better-than-expected loss and revenue that beat estimates for its fiscal first quarter that ended Feb . 29.

The company, which temporarily moved its Baltimore operations to Norfolk, said its forecast of $5.63 billion in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for fiscal year 2024 doesn't include the impact from the Key Bridge collapse.

More than 13,000 call options that give the holder the right to buy Carnival's shares at $17 each by April 19 were traded as of 11:10 a.m. New York time. The contract is the most-active of all the options tied to the stock. The price of those $17 calls sank more than 40% to 48 cents as the stock trades at $16.51, down 3.9%.

Meanwhile, put options that give the holder the right to sell the stock at the same strike price of $17 by April 19 rose almost 41% to 86 cents.

The $17 calls were the most-active Carnival options expiring in next three weeks. More than 11,000 of such calls expiring today were also traded, with the price sinking 86% top 2.5 cents.