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An Attractive Apple Entry Point; Analysts, Options Traders Bullish on Oracle

Pandora's last breakout attempt was extinguished by its 50-day moving average

Jul 5, 2017 at 10:03 AM
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Analysts are weighing in on iPhone maker Apple Inc (NASDAQ:AAPL), streaming music service Pandora Media Inc (NYSE:P), and software stock Oracle Corporation (NYSE:ORCL). Here's a quick roundup of today's bullish brokerage notes on shares of AAPL, P, and ORCL.

Apple Stock Offers Attractive Entry Point

Apple stock is up 0.04% at $143.54, after Citi reportedly reiterated its "buy" rating and $160 price targeting, saying the shares are presenting an attractive entry point ahead of the company's next iPhone release. AAPL has been trading below its 50-day since after its June 9 pullback, but is still up almost 51% year-over-year. Meanwhile, call buying has remained the preferred strategy from options traders, but puts have actually been more popular than normal lately. For example, Apple's 10-day put/call volume ratio of 0.59 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks above 75% of readings from the past year. 

Short Sellers Stay After Pandora Stock

Pandora stock has opened nearly 2% higher at $8.94, after Morgan Stanley resumed coverage with an "overweight" rating and $12 price target. P shares haven't topped the $12 mark since early April, with their most recent breakout attempt quickly thwarted by the descending 50-day moving average. Short sellers continue to target Pandora. During the past two reporting periods, short interest is up roughly 20%. 

KeyBanc Upgrades Red-Hot Oracle Stock

KeyBanc upgraded its rating on Oracle to "overweight" from "sector weight," lifting ORCL 0.85% today to $49.77. It's been a great year for the stock, which recently gapped higher to hit a record high of $51.85 on June 22. In fact, Oracle stock is up almost 29% year-to-date. Near-term options traders certainly seem optimistic. This is according to ORCL's Schaeffer's put/call open interest (SOIR) of 0.49, which is only 5 percentage points from a 12-month low. Said differently, options traders targeting options expiring within three months are unusually call-skewed. 

 

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