Sell Alert: Take an 88% Gain on Royal Caribbean Put Spread
Thanks to the constant need to refresh its ship fleet to keep customers happy in a competitive business, RCL is on a capital spending treadmill. It has been a persistent free cash flow burner. We are 20 calendar days into the trade, which is exactly 25% of the 80 days between trade entry and expiration. We have gained nearly 50% of our maximum potential profit (88%, versus a maximum 178%), so it makes sense to sell now.