How to trade Carnival before earnings using options

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How to trade Carnival before earnings using options
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Mike Khouw analyzes Carnival ahead of earnings.

Carnival will report earnings on Tuesday before the open. The options market implies a substantial earnings-related move of about 8%, much more than the 5% earnings-related move the company has averaged since mid-2013. We'll review an options trade that generates some income into the results. Investors wonder whether the cruise industry can sustain robust bookings from the early part of the year through 2024 year-end.

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