Weekend Trader Series
November 2, 2025
Open Positions Update
There are no portfolio updates this week.The following is this week's recommendation:
Royal Caribbean Cruises (RCL)Place a limit order to buy the Royal Caribbean Cruises (RCL) January 16, 2026 270-strike call at a limit price within range of the current market asked price when you place your order. At the close on Friday, October 31, this option was offered at $32.00. RCL closed at $286.83 on Friday, October 31.Do not attempt to enter this position after Monday's close.Please use the following guidelines to manage the position:- Exit the position if the option is at a 100% gain from your entry price.
- If the option has not reached its target profit by 3:00 p.m. Eastern time on Monday, November 24, close the position.
- If there is a change to the above closeout parameters, we will notify you in your regular Sunday evening communication.
Royal Caribbean Cruises (RCL) stock recently pulled back to a potential support level within the context of a long-term uptrend, as defined by its January closing high at $274 – which is near
double major twin peaks in 2018 and 2020 – and the rising 12-month moving average. The latter has also provided excellent buying opportunities for the shares since 2023.
The security is outperforming the S&P 500 Index (SPX) in 2025 with a 24% lead, even after the cruise giant issued a dismal fiscal fourth-quarter profit outlook that sparked several earnings revisions lower, setting a lower expectation bar moving forward. It’s also worth noting that the 270-strike is the first area where puts dominate, following a post-earnings pullback from the call-heavy 320-strike.
Implied volatility (IV) on January options is in line with 63-day historical volatility (HV). What’s more, it would take short sellers more than five sessions to cover their bearish bets, which could provide a floor for RCL as it trades into long-term support.
Our recommended January 16, 2026 270-strike call has a leverage ratio of 6.30 and will double on a 16% rise in the underlying equity.
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