Royal Bank of Canada, known as RY on the NYSE, operates globally across various financial services. The bank expects its stock price to rise to $187.25 or higher, starting from a low point in April 2025. Since the low in March 2020, we’ve seen significant changes. The stock reached a high of $119.41 in January 2022 and dropped to $77.90 in October 2023. Recently, after ending at $106.10 in April 2025, the stock has shown positive movement. After holding steady in April 2025, the stock is climbing towards $134.26. During this phase, it broke through important price channels and reached $149.26 in the initial wave. The forecast shows further growth into the $165.02 to $178.54 range, with a brief pause before continuing upward. Overall, the stock is expected to rise to $187.25, comprising nine rally phases. After this climb, a corrective phase will offer new buying opportunities. Pullbacks in three, seven, or eleven swings are good chances for investors to buy, helping ensure ongoing growth. Looking ahead to the end of 2025, the outlook for Royal Bank of Canada (RY) is very positive as we enter the new year. We expect the stock’s rally, which began in April 2025, to continue, with a clear target of $187.25 or more. This optimistic forecast is backed by the resilience of the Canadian banking sector, which saw nearly an 8% year-over-year revenue growth in the third quarter of 2025. For those trading derivatives, any short-term weakness should be viewed as a great buying opportunity. It’s wise to sell cash-secured puts on dips to earn premiums or use bull put spreads below recent support levels, like $143. This strategy aligns with the strong performance following the company’s Q4 2025 earnings report, which exceeded expectations due to growth in its wealth management division. The stock’s reliable dividend, consistently paid for over 150 years, adds security to bullish investments. With a current dividend yield around 3.8%, owning shares through a put option makes sense for long-term investors. This steady return helps stabilize the stock during minor pullbacks. Reflecting on the trends as we near the end of 2025, the major lows from March 2020 and October 2023 created a strong foundation for this upward trend. The current rally is part of a larger cycle, suggesting that today’s momentum is likely to be sustained. We foresee a move into the $165.02—$178.54 range soon, before a significant correction. Implied volatility for RY options has recently dipped to a 52-week low of 16%. This makes long calls or call spreads an effective way to position for the expected upside. We recommend using any pullbacks in the upcoming weeks to establish bullish positions, as long as the momentum remains strong.

here to set up a live account on VT Markets now