Carnival Corp ($CCL) is setting sail on August 1st and the stock is reacting. Here’s how I’m trading it. (May 04, 2020)
CCL SPY CCL RCL NCLH CCL NCLH RCL
One thing that I have been looking at lately are these cruise ships ( NYSE: CCL ); they have been way underwater but they have given us some really great trading opportunities. It looks like today was no exception. Last week they ran up but then they sold, you could see this on Thursday and Friday, and they all ( NYSE: CCL ), ( NYSE: RCL ), NYSE: NCLH ) kind of did the same thing. These boats are all docked; they don’t have anybody on them except people with HAZMAT suits probably scrubbing things down, so it’s kind of a big deal for them.
The way these stocks were trading premarket, they were down so much, I didn’t really know which way they were going to go. We have a couple positions on Option Market Mentor, they are actually working really well because we have, essentially, sold the volatility and we are assuming that the stocks are staying in these trading ranges, and they are.
The reason I am pointing Carnival ( NYSE: CCL ) out is, the company is actually booking their first cruise on August 1st. I will tell you one thing, it wouldn’t surprise me if that thing was packed. And the theory from the average Carnival ( NYSE: CCL ) cruiser, would be, Hey, in light of everything that has been happening, if they are letting me on the cruise ship then it must be safe and that is good enough for me. That is just kind of the way I think; I can’t say whether that’s right or wrong, I don’t know. I do know that it is a net positive for the company that they are actually starting to take reservations for a cruise in August, towards the end of the summer.
Again, I think it bodes well for the company and I think that’s one of the reasons why these stocks are up. It is kind of like, do you think the best is behind these stocks, based on where they are right now, is the best behind them or is it ahead of them? And I think what is happening is, the market is factoring in really, really crappy times, that was the big sell-off here. And now I think these things are going to start getting more of a lift.
Full disclosure, this is not my typical kind of trade. I just happened to kind of see these, get in on them, gave some really big short-term gains. But they are more kind of day trading or swing trading stocks, which is right up Scott McGregor’s alley as opposed to mine. I have a sneaky suspicion that we will be able to make money on Carnival ( NYSE: CCL ), $14.50 stock, that’s a low dollar stock and plenty of volume. The same thing here with Norwegian ( NYSE: NCLH ); Royal Caribbean ( NYSE: RCL ) is a higher-priced stock.
The point is, you can be buying a whole bunch of shares and you make really nice money if the stock moves $0.50 or so.
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