Schaeffer's 43rd Anniversary Stock Picks in 2024

Options Volume Nears Annual High as Oracle Traders Prep for Earnings

Oracle's puts are popular today, though calls look preferred long term

Managing Editor
Dec 12, 2019 at 1:52 PM
facebook X logo linkedin

California-based Oracle Corporation (NYSE:ORCL) is down 0.3% at $56.15 today, as Wall Street gears up for the company's earnings, slated for after the market closes this evening. Despite a brief drop back in September, ORCL has been an outstanding performer on the charts long term. The tech name is now up 24% year-to-date, with support from its 200-day moving average capturing multiple pullbacks since early this year. 

Daily ORCL with 200MA

In terms of Oracle's earnings history, the stock has closed lower the day after reporting in all but two of the past eight quarters, averaging a 4.7% swing, regardless of direction. This time around, the options market is pricing in a slightly larger, post-earnings move of 6.6%.

The options pits are also seeing some pre-earnings action. With more than 7,000 contracts on the tape so far -- three times the expected rate, and in 91st annual percentile. Most active looks to be both the December and January 52.50 puts, as well as the weekly 12/13 55-strike put. 

Long-term, sentiment looks to be leaning bullish, as the equity's 50-day call/put volume ratio of 1.67 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), ranks in the 94th annual percentile. In other words, calls have been purchased over puts at a faster-than-usual clip within the past 10 weeks.


A.I.’s Dirty Little Secret: The Real Power Behind The AI. Boom ✨

Anyone who’s seen the The Matrix movies knows that A.I. needs power.  Lots and lots of power.

If you’ve seen the movie, you also know the grizzly results of the ensuing battle for that power.

Now, Wall Street’s battle for A.I. power won’t go to such extremes. Hopefully?

A.I. needs more power and that means more opportunities for stock traders in the know.

Download your free copy of “The A.I. Revolution: 4 Stocks to Buy Now”!