Put Options on CCL on 7/22/2019

Carnival Corporation (CCL) operates as a leisure travel and cruise company.

It offers cruises under the Carnival Cruise Line, Princess Cruises, Holland America Line, and Seabourn brands in North America; and Costa, AIDA, P&O Cruises (UK), Cunard, and P&O Cruises (Australia) brands in Europe, Australia, and Asia.

The company operates approximately 100 cruise ships.

It also owns Holland America Princess Alaska Tours, a tour company in Alaska and the Canadian Yukon, which owns and operates hotels, lodges, glass-domed railcars, and motor coaches. In addition, the company is involved in the leasing of cruise ships.

It sells its cruises primarily through travel agents and tour operators. 

Shares have formed a bearish"flag" following the company's quarterly report and future guidance. The company said it expects third quarter earnings of $2.50 to $2.54 per share and now expects fiscal 2019 earnings of $4.25 to $4.35 per share. The company's previous guidance was fiscal year earnings of $4.35 to $4.55 per share and the The current consensus earnings estimate is $2.70 per share for the quarter ending August 31, 2019 and $4.53 per share for the year ending November 30, 2019. Lower share prices are expected for this stock.

We will be trading August 16th Put Options

Last Trade: $45.09

Trading Range: $44.76 - $67.69

Trade Buy 1 August $45.00 Put at $1.00 For a net debit of $1.00 Profit/Loss Analysis Breakeven at $44.00 Maximum profit is unbounded Maximum loss is ($100.00) at strike of $45.00 Closing Summary Sold 1 August $45.00 Put at $0.50

Position closed on 8/16/2019 at price of $0.50 with a -50.00% loss in 25 days.

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