Unusual Options Activity in Oracle $ORCL

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Unusual Options Activity In Oracle ORCL
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• Hi, My name is Steve and Im with Options Trading
  Research, today were reviewing our recently
  published article

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• Unusual Options Activity In Oracle ORCL

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• As many of you know, unusual options activity can
  be a valuable indicator as to what traders are
  thinking, and more importantly, where these
  stocks are heading in the short-term.

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• This is something professional options traders
  pay a lot of attention to, and for good reason
  Unusual options activity can tip off big moves
  in a stock, either up or down.

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• So lets take a look at some interesting
  activity that caught our eye this week
• Oracle ORCL is the biggest database provider in
  the world.

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• The company generates nearly 40 billion in
  revenues and 10 billion in profits per year.
  For a good description of the company, follow the
  link.

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• ORCL is trading at 36.01, down 19 for the
  year. Thats 22 below the 52-week high, and
  just 2 from the 52-week low.

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• So what does unusual options activity in ORCL
  tell us?

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• When the stock market sells off as much as it has
  lately, its hard to separate overall market
  action from individual stock dynamics.

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• In other words, if a stock is falling because of
  something company-specific, wed never know due
  to the broad market action.

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• In the case of Oracle, the company was already
  having a less than stellar year even before the
  correction. Increased competition in the global
  database market has been taking its toll on the
  companys bottom line.

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• The stock was already 13 from its 52-week high
  before dropping another 9 over the last month.
• Heres the deal

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• This week, a trader bought a large block of
  weekly puts in ORCL. Keep in mind, a put option
  makes money when the underlying stock moves lower.

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• Specifically, a trader purchased 6,200 35.50 puts
  for about 0.18 each, expiring at the end of this
  week (September 4th). The total cash outlay for
  this trade is roughly 111,000.

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• Breakeven point for the trade is 35.32. Given
  the open interest, this trade is clearly an
  opening position.
• Heres the chart of ORCL

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• ORCL has plunged below the 50-day average the
  past week or so due to the correction in equity
  markets. At the moment, the stock is only 2
  from its 52-week low after taking another sharp
  downturn this week.

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• This trade suggests that ORCL may keep on
  falling, and set a new 52-week low. Although the
  option only costs 0.18, it is relatively close
  to the money. The share price need only fall
  another 2 for the trader to start making money
  on the puts.

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• Given the recent volatility in the market, its
  very possible this short-term put trade could
  make money before Fridays expiration. Whats
  more, given the very short time until expiration,
  these puts are likely being used for speculation
  and not hedging.

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• More Options Trading Ideas

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• Keep in mind, theres a lot more unusual options
  activity going on than what we discuss here. We
  just try to bring you what we feel are the most
  significant ones and the ones you might actually
  be able to make some money on!

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