OptionsHouse

Options Trading News

July 3, 2013  Wed 3:47 AM CT

ORCL: SEE CHART GET CHAIN FIND STRATEGIES
Oracle is attracting a bullish combination trade for the second time in less than a week.

A trader bought 5,250 August 34 calls for $0.04 less than 3 minutes before yesterday's close and, at the same second, sold 5,250 August 25 puts for $0.04, according to optionMONSTER's tracking systems. Volume was well above the previous open interest in each strike, showing that this is new positioning.

The trade was similar to one opened last Thursday, when 5,000 August 31 calls were bought and the same number of August 29 puts were sold.

The strategy behind both trades is highly bullish, as a rally by mid-August would increase the value of the long calls while rendering the puts worthless. However, the opposite would occur if the stock drops. (See our Education section)

ORCL was down a penny yesterday to $30.10. The database company, which gapped lower after its last two earnings reports in March and last month, is now trading at its lowest levels since November. But the stock has also held support above $29 since last July, so traders may think that chances are good for a bounce.
Share this article with your friends


Related Stories

ORCL

Short-term put buying hits Oracle

September 1, 2015

The database maker gapped down after its last earnings report in June and is near its low from last October's market plunge.

OptionsHouse

Premium Services

Archived Webinar

Education & Strategy

Options Academy: On Options Strategies in General

Before we hop into the different option strategies, I have a few thoughts for you to remember concerning the strategies and our use of them.

View more education articles »