The automated Quantcha Trade Ideas Service has detected a promising trade opportunity for ROYAL CARIBBEAN CRUISES () for the 15-Sep-2017 expiration period. You can analyze the opportunity in depth over at the .
RCL was recently trading at $119.73 and has an implied volatility of 18.63% for this period. Based on an analysis of the options available for RCL expiring on 15-Sep-2017, there is a 34.14% likelihood that the underlying will close within the analyzed range of $119.76-$128.04 at expiration. In this scenario, the average linear return for the trade would be 51.35%.
52 week high: ROYAL CARIBBEAN CRUISES recently reached a new 52-week high at $120.28. RCL had traded in the range $65.10-$120.00 over the past year.
Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if RCL maintains its current direction and does not revert back to pricing on the bearish side of $119.73 on 15-Sep-2017. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if ROYAL CARIBBEAN CRUISES closes at or above $118.30 on 15-Sep-2017. Based on our risk-neutral analysis, there is a 57.27% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the .
This is an automated post generated based on a market analysis of delayed data at 8/3/2017 10:56:07 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.