One investor apparently thinks that Carnival is going nowhere in a hurry.
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 straddle , 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 time decay will accelerate as expiration approaches on Oct. 21.
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.
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