BY LICIA LESLIE
November 8, 2023
Hi Shoppers,
Royal Caribbean Cruises (Ticker: RCL) has rallied half way back from its selloff:
Yesterday’s action has created a bearish engulfing candle which could be signaling an end to this rally.
Looks like RCL can pull back to $90 and possibly $85.
Let’s shop for puts:
I like next week’s puts.
The at the money 92.50s are a tad bit expensive.
Instead I like buying the 93 puts (the IV is lower than the 92.50 strike) and selling the 88 puts which have an implied volatility of 37.60 which is much higher than the 93 puts.
That puts edge in your trade.
Paying $1.50- $1.55 for this five point spread is a good price.
Use a close over $94 for your stop loss.
Trade Review
Schlumberger (Ticker: SLB) has traded lower. Not as much as I would have liked as the market was down but I still think it is heading south.
Thanks for Reading … See You Next Tuesday,
Licia Leslie
Licia Leslie
Head of Technical Analysis
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