Options Trading News

September 19, 2016  Mon 10:24 AM CT


A huge put sale is betting that Oracle is on solid ground.

optionMONSTER's tracking programs show that 10,730 Weekly 38 puts expiring on Oct. 28 were sold in one print for $0.47 on Friday. This is clearly a new position, as open interest in the strike was a mere 5 contracts before the trade occurred.

Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)

ORCL is up 0.67 percent to $39.18 in morning trading but is down 6 percent in the last month. The database company reported bearish quarterly results last Thursday.

Overall option volume is about average in ORCL so far today.

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