One investor apparently thinks that Carnival is going nowhere in
optionMONSTER's tracking systems detected the sale of about 1,600
contracts each in the October 32 puts for $1.35 and the October 34
calls for $0.70 to $0.85. It resulted in a credit of $2.05 to
$2.20, which the investor will get to keep if CLL remains between
$32 and $34 for the next five weeks.
Known as a
, the trade is designed to profit from the passage of time rather
than from the stock making a directional move. This is especially
suitable now because
will accelerate as expiration approaches on Oct. 21.
The strategy will also benefit from lower
, which would depress the value of the calls and puts sold short.
CCL is down 4.81 percent to $33.80 in morning trading. The
cruise-line operator has lost more than one-quarter of its value so
far this year but is up today after reporting better-than-expected
earnings and revenue.
Overall option volume is triple the daily average so far today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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