Schaeffer's Options Center
Sponsored by:
Schaeffer's Daily Option Blog

Oracle Corporation (ORCL): Option Traders Brace for an Earnings Miss

ORCL's December 34 put was popular on Monday

by 12/3/2013 10:04 AM
Stocks quoted in this article:

Option Brief: Put players set their sights on Oracle Corporation (NYSE:ORCL) yesterday, with the contracts trading at three times the average daily volume. Amid this increased demand in the options pits, ORCL's 30-day, at-the-money implied volatility (IV) rose 1.0 percentage point to 24.0% -- its loftiest perch since mid-September.

The most active strike by far was the December 34 put, which saw 26,528 contracts change hands -- including several large blocks -- and according to Trade-Alert, a number of these positions were purchased for a volume-weighted average price of $0.46 apiece. IV at the strike rose 4.2 percentage points, open interest soared overnight, and data from the International Securities Exchange (ISE) confirms buy-to-open activity. In other words, the speculators expect ORCL to fall south of the $34 mark over the next several weeks.

This time frame encompasses the tentative release date of ORCL's fiscal second-quarter earnings report. The equity has experienced some wild price swings following its quarterly announcement, and in both March and June, shed more than 9% in the subsequent session. From a broader technical perspective, Oracle Corporation (NYSE:ORCL) hasn't fared too well on the charts, with the stock up a slight 5% on the year to trade at $34.97.


Featured Brokers
Unusual Option Volume
Option Flow
Most Active Stocks
Most Active Option Strikes
Largest Open Interest

Partner Center

© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email:

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by | Data delayed 15-20 minutes unless otherwise indicated.