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  • Swing Trade Idea (RCL) – July 13, 2023

    Jul 13, 2023 Swing Options Tips Comments Off on Swing Trade Idea (RCL) – July 13, 2023

    OptionsPlay’s bearish trade for Thursday, July 13th is Royal Caribbean Cruises Ltd. (RCL). RCL is part of the  Consumer Discretionary Sector, which has performed at 0.54% over the last week, with RCL underperforming at -3.81% over the same period, as it is pulling back from new highs and an overbought condition.

    RCL has been in a strong rally since April 2023 and has reached a point of exhaustion. It found resistance at $100 and is pulling back from this level with the next major support at around $83. This trade has an excellent risk/reward ratio with a premium to strike differential of 39%.

    As a close, if RCL were to trade above $102 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves below $1.96.

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