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Oracle options are doing something curious heading into earnings
CNBC • • business
Key Points:
- Oracle's shares have fallen 17% year-to-date and lost over half their value from 52-week highs, yet options traders are anticipating a significant move of around 11% following its earnings report after the bell Thursday.
- The 11% expected move is slightly higher than Oracle's average post-earnings move of 9.5% in recent quarters, influenced by the stock’s history of sharp earnings reactions and a notable 35% jump in September 2025.
- Options activity shows a strong preference for call options over puts, with investors paying more for upside exposure, reflecting optimism about Oracle’s recent momentum, potential for explosive gains, and confidence in its AI infrastructure investments.
- Positive market reactions to AI investments by peers like Microsoft and Amazon may be fueling investor optimism in Oracle, though concerns remain about the company’s ability to fund its AI buildout without financial strain.
