Q2 STOCKS TO BUY

Cruise Stock Slumps as Covid-19 Protocols Evaporate

Short sellers have been jumping aboard over the last reporting period

Digital Content Manager
Oct 5, 2022 at 10:17 AM
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Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) is wiping away its Covid-19 safety measures amid a return to international traveling. The company announced it will no longer require passengers to be vaccinated against the disease or wear face masks onboard, and has also gotten rid of other sanitary protocols. At last check, NCLH is down 3.1% to trade at $12.90.

The $16 region rejected the security's last rally, and shares last week lost support from the 40-day moving average, which had been in place since early August. Longer term, NCLH is down more than 53% year-over-year. 

Short sellers have been jumping aboard lately, with short interest up 4.4% in the most recent reporting period. The 39.14 million shares sold short now make up 9.3% of the security's available float.

The options pits reflect that pessimism. This is per NCLH's 10-day put/call volume ratio of 1.70 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than all readings from the past year. 

 

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