The bulls stampeded into Oracle today after the database maker reported better-than-expected earnings results and issued a strong forecast for the next quarter.
The August 24 calls were the most active options, trading 12,300 times for $0.15 to $0.24. Volume was more than 70 times open interest, and a single large purchase for $0.20 generated more than half the volume. The July 20 calls and January 20 calls were also active, but volume was below open interest, according to OptionMonster's tracking systems.
ORCL is up more than 9 percent to $21.67 in midday trading on heavy volume in stock and options. The company, which has grown dramatically through acquisitions, reported a smaller-than-expected decline in sales of new software licenses in the fiscal fourth quarter. Management also said their products enjoyed broad market-share gains against rival SAP.
New money also flowed into ORCL's September 21 puts, probably reflecting protection buying on the part of new shareholders. The puts traded 7,791 times for $1.15 to $1.50 against open interest of 4,137 contracts.
Overall options volume was more than thee times average, with calls outnumbering puts by more than 3 to 2.
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David Russell is a reporter and writer for OptionMonster.