Oracle (ORCL) is gearing up for its fiscal Q2 earnings report, which could spark options trading opportunities. The software giant’s stock has rallied in anticipation of a strong quarter, with analysts expecting revenue to rise 9% and adjusted profit to increase 11%. Meanwhile, MongoDB (MDB), another database software company, reports its October-ended quarter after the bell.
Oracle’s cloud infrastructure revenue jumped 45% year-over-year, while its database services segment is expected to drive growth. The company also announced plans to bring its database services to Amazon Web Services, a significant move in the cloud computing space.
Options traders are taking notice, with a slightly out-of-the-money weekly call option on Oracle stock showing promise. One contract gave the holder the right to buy 100 shares at $187.50 per share, with a premium of around $7.50. The expected move in the options market was about 15-16 points up or down, making this a relatively low-risk trade.
With several top-performing stocks reporting earnings this week, including Costco (COST) and Ollie’s Bargain Outlet (OLB), investors are looking for ways to capitalize on these opportunities. A basic call option strategy can allow traders to buy a stock at a predetermined price without taking significant risk.
Keep an eye on Oracle’s earnings report and consider exploring options trading strategies, such as this one, which could provide a way to profit from the expected growth in its cloud infrastructure segment.
Source: https://www.investors.com/research/earnings-preview/oracle-stock-probes-all-time-highs-software-giant-in-new-growth-phase