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.

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Dan Amoss

Dan Amoss, CFA, tracks aggressive accounting and other red flags that markets miss. He’s a student of the Austrian School of economics and Daily Reckoning fan since 2000. Agora Financial relies on Dan for macro market commentary as well as profitable plays like his 2008 call to readers to buy Lehman Bros. puts, which...

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