Tony Zhang Sees Unusual Options Activity In Carnival Corp

On CNBC's "Options Action," Tony Zhang said Carnival Corp CCL traded fairly actively on Wednesday as 137,000 contracts were traded.

During the session, Zhang noticed a purchase of 1,200 contracts of the July $30 calls for $1.32. The trade breaks even at $31.32 or around 7% above the closing price on Wednesday. The strategy risks only 4.5% if the stock trades lower at the July expiration.

The company is going to report earnings in a couple of weeks and there is a risk that we are going to see another revenue or earnings miss to the downside, said Zhang.