Oracle Stock Bounces Back on Strong Cloud Demand

Overall options volume is running at 18 times what is typically seen at this point

Digital Content Manager
Jun 14, 2022 at 10:20 AM
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Oracle Corporation (NYSE:ORCL) is up 9.1% at $69.85 at last check, after the computer technology name posted fiscal fourth-quarter earnings of $1.54 per share -- higher than the $1.37 per share Wall Street anticipated-- in addition to a revenue beat. The company attributed the strong results to higher demand for its cloud products, amid an industry-wide shift to those platforms.

Analysts are already chiming in. The security attracted four price-target cuts, including one from Stifel to $72 from $83, while Jefferies and Citigroup bumped their price objectives to $80 and $81, respectively. Analysts are hesitant toward ORCL, with 11 of the 15 in question carrying a tepid "hold" or worse rating.

The equity is bouncing back from yesterday's roughly one-year low of $63.76, but is still struggling to overcome overhead pressure at the 50-day moving average, which moved into place back in April. So far this year, Oracle stock has already shed more than 19%.

The options pits are leaning bearish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock sports a 50-day put/call volume ratio of 1.17 that ranks higher than 96% of other readings from the past year. This means long puts have been picked up at a much quicker-than-usual pace.

Options traders are blasting Oracle stock today. So far, 25,000 calls and 40,000 puts have crossed the tape, which is 18 times the intraday average. The most popular contract is the June 65 put, followed by the 70 call in that series, with positions currently being opened at the latter.


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