Cruise Stock Presents Attractive Buying Opportunity

Core Viewpoint - Royal Caribbean Cruises Ltd (NYSE:RCL) stock is experiencing a pullback to a potential support level while maintaining a long-term uptrend, with significant historical price points influencing current trading behavior [1] Group 1: Stock Performance - RCL is outperforming the S&P 500 Index (SPX) in 2025 with a 24% lead, despite a disappointing fiscal fourth-quarter profit outlook that led to several earnings revisions lower [2] - The stock has seen a post-earnings pullback from the call-heavy 320-strike to the 270-strike, where puts are now dominating [2] Group 2: Technical Indicators - The stock is near its January closing high at $274, which aligns with major peaks from 2018 and 2020, and is also supported by a rising 12-month moving average that has provided buying opportunities since 2023 [1] - Implied volatility (IV) on January options matches the 63-day historical volatility (HV), indicating stability in market expectations [3] Group 3: Short Selling and Options - It would take short sellers more than five sessions to cover their bearish bets, potentially providing a floor for RCL as it approaches long-term support [3] - A recommended January 16, 2026 call option has a leverage ratio of 6.30, suggesting that a 16% rise in the underlying equity would double the option's value [3]