Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
Join 100,000+ Like-Minded Investors Today
Twitter

This RCL Trade Could Be the Turnaround Play of 2021

Start the conversation

By TOM GENTILE, America's No. 1 Pattern Trader, Money Morning • @powerproftrades • February 23, 2021


Editor's note: All it takes is a couple of these “Payday Appointments” to start collecting big profits. America's #1 Pattern Trader shows you how to schedule eight of these potential paydays on your calendar this month – all you need to do is click here to see how his strategy works.


Dear Red Alert Reader,

We're clearly nearing the end of the pandemic, at least as far as its impact on our normal lives goes, and not a minute too soon. Vaccines and herd immunity are all over the headlines, and folks like Dr. Fauci and President Biden have both said, cautiously, if things keep improving, we could see something like normal life returning by this summer.

The economy is rebounding, and some corners of the market have already fully recovered. Walt Disney Co. (NYSE: DIS) just blew past an all-time high of $193.85 thanks to a $16.25 billion earnings beat on Feb. 11.

Expectations there had been pretty modest, considering how hard the pandemic has hit Disney's bottom line, but the performance knocked the markets' socks off.

The takeaway there is that Disney is coming back stronger than ever. That's what pent-up demand can do to stocks.

The Disney "pop" has already happened, but my proprietary Money Calendar has found what I think should be an even better play on a pandemic rebound.

Best of all, we can do it for basically pennies on the dollar and book double-digit profits - or maybe even better. Here's how...

There's Big Long-Term Potential Here

"New normal" is a phrase we've heard a lot over the past 12 months, but I think recovery is about to become the "new normal." It's a trend I think we've all been looking forward to.

That recovery's going to have a huge impact almost all the way across the board, including sectors that have already started to rebound.

Sign up for SMS so you never miss special events, exclusive offers, and weekly bonus trades.

After 10 years and millions of dollars of research costs, this new "5-Minute Payday" strategy brings new traders a shot at easy cash week after week. Get the details.

But I think the recovery play to make is the cruise lines. I know: For months, folks have been saying "hold off on cruise lines," and that's been true, but now's the time.

Top cruise stocks like Royal Caribbean Cruises Ltd. (NYSE: RCL) and Carnival Corp. (NYSE: CCL) are trading around 50% below their pre-COVID-19 levels.

So it's almost all upside from here.

Pre-pandemic, Royal Caribbean was the revenue superstar of the cruise segment; it took in revenue of $5.6 billion, and RCL shares were trading at an all-time high of $135.

Royal Caribbean has already booked 150,000 people for test sailings, and once it's given the green light (and I think it will be), we're talking "skyrocket" territory.

You can see the price slowly rebounding in the chart above...

But it has yet to hit the real spike I'm looking for - that's the one we're going to profit on.

Let's Look and LEAP on Royal Caribbean

Sure, you could buy Royal Caribbean, but it's $87 a pop right now - $8,700 for 100 shares. If it even comes close to its former highs, we're talking about a gain of around 55% or so, which isn't bad.

The lower-risk, higher-potential return play is long-term equity anticipation (LEAP) options, where you could make that kind of profit with a much smaller move in the stock.

One of the great things about options is you can use them to take down profits in three or four days, but you can also use them to cash in on moves - like a powerful rebound coming to the cruise industry, say - even if you think the big move is happening a few weeks or months down the line.

Right now, you can buy RCL Jan. 21, 2022 $80 calls, 100 contracts for $1,700 - seventeen hundred bucks to control 100 shares of Royal Caribbean for a year, versus $8,700 to buy outright.

That's smart, but there's an even sweeter spot to be in. You can lower your risk even more by building an RCL call spread, selling a higher-strike option while buying a lower-strike option to slash your risk to the bare minimum.

To do it, buy an out-of-the-money (OTM) call expiring in early 2022, while selling a call, one or two strikes higher, expiring on the same date.

8 new payday opportunities this month? Yes, please! You've got to see this...

Right now, you can buy an RCL Jan. 21, 2022 $80 call and sell a Jan. 21, 2022 $90 call for about $3.25 a share. You're risking just $325 for 100 shares of RCL worth $8,700.

Spreads can be a great way to bag cheap and big profits on trends that are just starting to pick up steam - and with LEAPs, you can give yourself a really, really high ceiling - but that's just one strategy. Like I said, the beauty of options is that there are so many ways to potentially profit.

I've been working on what I think is the perfect way for anybody to target blue chips - for a fraction of the cost and risk. The strategy helped achieve my biggest win rate: 100% since April 2020, during one of the most turbulent years in a century. That's 23 wins and zero losses. The market is continuing to turn around, too, so I don't see this profit potential slowing down anytime soon. I'll fill you in on the details here...

Red Alert Frequently Asked Questions

Follow Money Morning on Facebook and Twitter.

This RCL Trade Could Be the Turnaround Play of 2021

February 23, 2021 by Tom Gentile

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

We're clearly nearing the end of the pandemic, at least as far as its impact on our normal lives goes, and not a minute too soon. Vaccines and herd immunity are all over the headlines, and folks like Dr. Fauci and President Biden have both said, cautiously, if things keep improving, we could see something like normal life returning by this summer.

The economy is rebounding, and some corners of the market have already fully recovered. Walt Disney Co. (NYSE: DIS) just blew past an all-time high of $193.85 thanks to a $16.25 billion earnings beat on Feb. 11.

Expectations there had been pretty modest, considering how hard the pandemic has hit Disney's bottom line, but the performance knocked the markets' socks off.

The takeaway there is that Disney is coming back stronger than ever. That's what pent-up demand can do to stocks.

The Disney "pop" has already happened, but my proprietary Money Calendar has found what I think should be an even better play on a pandemic rebound.

Best of all, we can do it for basically pennies on the dollar and book double-digit profits - or maybe even better. Here's how...

There's Big Long-Term Potential Here

"New normal" is a phrase we've heard a lot over the past 12 months, but I think recovery is about to become the "new normal." It's a trend I think we've all been looking forward to.

That recovery's going to have a huge impact almost all the way across the board, including sectors that have already started to rebound.

100% SUCCESS RATE: This strategy helped Tom put together his best year ever, with 23 wins and zero losses since April 2020. See what's next here...

Sign up for SMS so you never miss special events, exclusive offers, and weekly bonus trades.
But I think the recovery play to make is the cruise lines. I know: For months, folks have been saying "hold off on cruise lines," and that's been true, but now's the time.

Top cruise stocks like Royal Caribbean Cruises Ltd. (NYSE: RCL) and Carnival Corp. (NYSE: CCL) are trading around 50% below their pre-COVID-19 levels.

So it's almost all upside from here.

Pre-pandemic, Royal Caribbean was the revenue superstar of the cruise segment; it took in revenue of $5.6 billion, and RCL shares were trading at an all-time high of $135.

Royal Caribbean has already booked 150,000 people for test sailings, and once it's given the green light (and I think it will be), we're talking "skyrocket" territory.

You can see the price slowly rebounding in the chart above...

But it has yet to hit the real spike I'm looking for - that's the one we're going to profit on.

Let's Look and LEAP on Royal Caribbean

Sure, you could buy Royal Caribbean, but it's $87 a pop right now - $8,700 for 100 shares. If it even comes close to its former highs, we're talking about a gain of around 55% or so, which isn't bad.

The lower-risk, higher-potential return play is long-term equity anticipation (LEAP) options, where you could make that kind of profit with a much smaller move in the stock.

One of the great things about options is you can use them to take down profits in three or four days, but you can also use them to cash in on moves - like a powerful rebound coming to the cruise industry, say - even if you think the big move is happening a few weeks or months down the line.

Right now, you can buy RCL Jan. 21, 2022 $80 calls, 100 contracts for $1,700 - seventeen hundred bucks to control 100 shares of Royal Caribbean for a year, versus $8,700 to buy outright.

That's smart, but there's an even sweeter spot to be in. You can lower your risk even more by building an RCL call spread, selling a higher-strike option while buying a lower-strike option to slash your risk to the bare minimum.

To do it, buy an out-of-the-money (OTM) call expiring in early 2022, while selling a call, one or two strikes higher, expiring on the same date.

WORST CASE: You could own one of the best stocks available, maybe at a deep discount. Best case? With the right stakes, you could potentially add thousands of dollars to an account on a near-weekly basis. You've got to see this...

Right now, you can buy an RCL Jan. 21, 2022 $80 call and sell a Jan. 21, 2022 $90 call for about $3.25 a share. You're risking just $325 for 100 shares of RCL worth $8,700.

Spreads can be a great way to bag cheap and big profits on trends that are just starting to pick up steam - and with LEAPs, you can give yourself a really, really high ceiling - but that's just one strategy. Like I said, the beauty of options is that there are so many ways to potentially profit.

I've been working on what I think is the perfect way for anybody to target blue chips - for a fraction of the cost and risk. The strategy helped achieve my biggest win rate: 100% since April 2020, during one of the most turbulent years in a century. That's 23 wins and zero losses. The market is continuing to turn around, too, so I don't see this profit potential slowing down anytime soon. I'll fill you in on the details here...

Follow Money Morning on Facebook and Twitter.

Filed Under: Options, Tom Gentile Tagged With: options trading

Latest News

June 9, 2023 • By Chris Johnson

How LEAP Trades can Double Your Profits at a Quarter of the Cost

June 9, 2023 • By Garrett Baldwin

Postcards: Invest in America... But Be Ready to Trade It for Less Risk with Puts

June 9, 2023 • By Alex Kagin

S&P 500 Bull Market, EV News and the American Consumer
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Flashpoint Trader Darknet Hyper Momentum Trader Alpha Accelerators Weekly Profit Cycles Brutus Alerts Resource Traders Alliance

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information