Late Tuesday, Carnival Corporation (NYSE: CCL) reported that it will temporarily cancel all stops in Mexico due to fears surrounding the swine flu. "We have decided to cancel calls at Mexican ports for all current sailings. Additionally, we will cancel calls in Mexico for all voyages departing Thursday, April 30 through Monday, May 4," the cruise line operator said in a statement.
Carnival isn't the only cruise line playing it safe. Sector peer Royal Caribbean Cruises Ltd. (NYSE: RCL) also announced plans to temporarily suspend port calls in Mexico. Currently, the World Health Organization (WHO) has not recommended any travel restrictions to halt the swine flu's spread.
Option players don't appear to be harboring any concerns about influenza's effects on Carnival's prospects. CCL's calls have been more popular than puts in recent days, with speculative investors adding roughly 2,800 contracts on the stock's out-of-the-money May 30 call during the past five sessions.
However, traders seem less enthusiastic about the outlook for RCL. Over the same time frame, the equity's most popular option has been the May 10 put, which has added roughly 2,500 contracts to open interest.
Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.
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