Not many companies have managed to blow away earnings for the past two quarters quite like Oracle ORCL – NYSE. In March, ORCL gapped up 9%. Then in June, shares spiked 11%. And these gains appear even more impressive considering the implied move in both cases was only around 4.4%.
Now with earnings approaching once again in September, a sharp trader just bought 3,500 ORCL October 50 calls for $1.65 apiece.
Costing $578,000, ORCL needs to increase 3.4% to the break-even price of $51.65 for this trade to pay off by expiration. Will recent earnings history repeat?
The chart confirms the trend, as ORCL is trading sideways once again, potentially setting up for yet another upswing on quarterly numbers next month. If ORCL goes 3-for-3, our customer is primed to make $350,000 for every dollar the stock adds above $51.65.
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