Traders bet Oracle is on solid ground
Traders are betting that downside potential will be limited in Oracle before its next earnings report.
optionMONSTER's market scanners show that 10,000 February 32 puts were sold mostly for $0.28 and $0.29 yesterday. Volume was more than 21 times the open interest in the strike, which indicates that new money was put to work.
Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Coaching section)
ORCL fell 3.19 percent to $34.24 yesterday and is down 7 percent in the last month. The database maker reported bearish results on Dec. 16 and is expected to release its next quarterly numbers after the close on March 16.
Overall option volume in the name was about average in ORCL yesterday.
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