Bought a very cheap OTM put on Carnival Cruises (CCL) about a month ago. High oil costs should not only effect their margins, but also their bookings. High airline tickets are a factor as many must fly to the embarking ports. In addition, as consumers look to cut back on expenses, we could see negative impact on their on-board customer spending (such as the $16 coconut drinks).
Position: JAN09 Strike $25. Earnings came out last week, with bookings on future cruises on pace with last year. Should drop before next earnings report. Will hold until next earnings report; expecting negative news for investors.
One concern I have is low liquidity when I want to close the position.
Trade is currently up 42% with CCL currently trading at $34.14. AL
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