Saturday, December 9, 2017

12/9/2017 stock option pick

RCL (royal Caribbean cruise): long Jan/2018 115~125 call spread with  around $7 premium


  • the break even price $122
  • potential gain ($10-$7)/$7 =   42.8%
  • potential loss 100% (but you always can close position earlier to limit loss)
  • The reason to choose it
    • 100% seasonality positive in Dec
    • note 1/22/2018 earning date 
    • the option date choosing next Jan is for more time value to decay
My personal opinion is not for investment purpose, but for education and illustration