Carnival's Stock Leap Followed By Spike In Options Trading: What Investors Need to Know

Carnival Corporation CCL shares rose to a fresh 52-week high on Monday after JPMorgan and BofA Securities upgraded their ratings on the stock.

Carnival was the second most active single stock on the S&P 500 during Monday’s session.

On CNBC’s "Options Action,"  Mike Khouw of Optimize Advisors said Carnival traded over 6x its average daily call volume on Monday.

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There were buyers of 33,300 of the August 15-calls at an average price of $1.45 per contract, Khouw mentioned.

The trader expects Carnival’s stock to surge at least 12% by August expiration.

JPMorgan upgraded the stock from Neutral to Overweight and raised its price target from $11 to $16. BofA Securities also upgraded the stock from Neutral to Buy and raised its price target from $11 to $20.

Price Action: Carnival shares jumped 12.5% to close at $14.72 on Monday, and added 1.4% in the after-hours trading session.

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