Oracle Options Turn Bullish
"Fast Money" Contributor
Oracle is attracting upside option activity as the database giant attempts to rally off a nine-month support level.
The June 27 calls showed the most action on optionMONSTER’s tracking systems, changing hands for $0.48 and $0.49. More than 11,000 contracts traded, though the volume was below the open interest of 13,603 contracts, so it is unclear how much of the activity was opening or closing transactions.
Calls lock in the price investors must pay to buy shares, so they can deliver major leverage in the event of a rally. They can also expire worthless if the stock doesn’t move.
Oracle shares ended the session up 1.22 percent to $26.46. Earlier this month shares bounced at the $25.50 area, a support level that goes back to August 2011.
Almost 40,000 options traded in the session, twice the daily average for Oracle. Calls outnumbered puts by a 2-to-1 ratio, a reflection of the session’s bullish sentiment.
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