Wednesday, September 7, 2011

Trade of the Day: ORCL March $30/$33 bull call spread

The Trade:
A trader bought the ORCL March 2012 $30/$33 bull call spread 850x at $0.83, or $70,550.

The trader is making a large bullish bet on Oracle, one of the leaders in bullish net deltas at 244k. Other bullish buyers include 2,990 October $26 calls and 3,600 October $27 calls. Oracle reports earnings on September 20th. Oracle trades at 10x earnings, 1.15 PEG and 3.76x sales. Oracle closed today at $27.63, up $1.14 or 4.3%. Both Stifel and UBS reiterated a Buy and have price targets of $34 and $37.

The white line shown in the daily stock chart is the break even underlying level at expiration.

*Special thanks to Option Radar, BMO Capital, MEB Options, Bloomberg, Reuters, Optionistics, LiveVolPro, CBOE, AMEX, Option Monster, T.O.P. group, and all of the options desks and traders we work with to provide the option flow!

No position at this time. Position declarations are believed to be accurate at time of writing but may change at any time and without notice.

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