Oracle is giving up some of last week's gains, and one trader sees more downside ahead.
ORCL is off 0.42 percent to trade at $29.58 after trading as low as $29.15 earlier today. On Friday the database maker rallied off its 2012 lows, posting its highest close since May 2.
A trader bought 9,000 December 29 puts for $1.63 and sold 9,000 December 23 puts for $0.54, according to optionMONSTER's Depth Charge system. The open interest at each strike was under 1,500 at the start of the session, so this is a new put vertical spread.
The spread cost the trader $1.09 to open, which is the amount that will be lost if ORCL remains above $29 at expiration. The trader can close out the spread at any time before expiration by selling it, of course, though the maximum gain of $4.91 would be realized only if the stock is below that $23 strike at expiration. (See our Education section)
Options Trading News
Social Media
Follow optionMONSTER for news and updates
Premium Services
-
Semi-active traders looking for simple calls and spreads (5 per week).
Learn More -
Entry-to-mid level traders looking for full circle trade analysis (1 per week).
Learn More -
Tailored, one-on-one education designed and led by Jon & Pete (3 months and up)
Learn More
