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

Large trade sees limit to risk in Oracle

September 19, 2016

The database company reported bearish quarterly results last Thursday and is down 6 percent in the last month.

ORCL

Oracle puts sold before earnings report

September 14, 2016

The database company announces quarterly results tomorrow afternoon, and one trader apparently sees little downside for the rest of the year.

ORCL

Oracle is target of short-term put buyer

August 31, 2016

The database manufacturer

OptionsHouse

Premium Services

Education & Strategy

Using spreads to minimize risk

Last week we discussed the risk vs reward profile of a debit call spread in Wells Fargo (WFC). This week we will run thru the risk vs reward of selling a credit put spread to achieve the same exposure of that debit call spread.

View more education articles »