Dan Nathan Sees Unusal Options Activity In Royal Caribbean Cruises

Dan Nathan said on

that he spotted unusually high volume in put options of Royal Caribbean Cruises Ltd.

. He explained that the volume was five times bigger than the average options volume in this name and one trade was exceptionally big. When the stock was trading at $60.50 a trader bought 7,500 of the September 55 puts for $0.58. Mr. Nathan added that this trade was probably made by a trader who is long the stock and decided to hedge its position. Royal Caribbean Cruises is very vulnerable to the events from Europe, said Dan Nathan, and showed on a chart that the stock recently reached its 52-week high but it failed to keep the gains. It is also interesting that the stock had a breakout right at the point where the put options break even.