Carnival Lands at Top 5 Most-Active Options Amid Profit Beat, Brighter Outlook
$Carnival (CCL.US)$'s improving financial prospects are spurring its heaviest options volume in more than two months, landing the cruise liner at the top five most active stock options Tuesday.
The company that runs cruise lines under its namesake brand, Princess Cruises, Holland America, Cunard, AIDA Cruises and P&O Cruises, unexpectedly swung to a profit in the second quarter, raised its full year earnings guidance and reported record booking volumes for 2025 sailings.
The company that runs cruise lines under its namesake brand, Princess Cruises, Holland America, Cunard, AIDA Cruises and P&O Cruises, unexpectedly swung to a profit in the second quarter, raised its full year earnings guidance and reported record booking volumes for 2025 sailings.
As of 12:08 p.m. in New York, more than 280,000 Carnival options changed hands. That put the stock's options volume just behind that of $NVIDIA (NVDA.US)$, $Tesla (TSLA.US)$, $Apple (AAPL.US)$, and $Advanced Micro Devices (AMD.US)$.
The most active Carnival contract is the call option that gives the holder the right to buy the stock at $18 by the end of the week. Volume on those calls reached more than 25,750 so far, more than triple its open interest. Demand for contract is soaring as the stock price climb near strike price, boosting the call option's intrinsic value and potentially helping keep the contract in-the-money when it expires in three days.
The stock surged after the company raised its adjusted earnings before interest, taxes, depreciation and amortization for the full year by about $200 million to $5.83 billion as advanced bookings left less inventory for the rest of 2024, helping the company increase prices. That surpassed the $5.7 billion expected by analysts, according to Bloomberg.
For the fiscal second quarter ended May 31, the company surprised the market with adjusted earnings of 11 cents per share, swinging from a 31-cent loss for the same period last year. Analysts polled by Capital IQ were expecting a loss of 2 cents per share.
"We closed yet another quarter delivering records, this time across revenues, operating income, customer deposits and booking levels, exceeding our guidance on every measure," Carnival Chief Executive Officer Josh Weinstein said in the company's press release Tuesday. "Based on continued strong demand trends, we are taking up our expectations for the year with net yields now forecasted to top 10 percent and propelling us towards double-digit returns on invested capital."
Carnival stock's 8% surge to $17.69 is spurring early warning signals. Eleven of the 15 technical indicators tracked by moomoo are flashing signs that the shares could be overbought, and the trend could be trending bearish. Only the moving average convergence-divergence technical chart is bullish.
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Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
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Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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