Option Focus | Oracle’s $3.63 Million Put Sale at $150 Strike Signals Downside Confidence, While $1.37 Million Call Buy Targets $165 by 2026

Option Witch08-11 07:01

Oracle Corporation closed at USD 151.05, rising 2.74%.

Options market activity showed a bullish tilt, highlighted by a massive $3.63 million put sale and a $1.37 million call purchase. Elevated implied volatility suggests expensive premiums, with institutional flow favoring upside positioning and downside support, creating a constructive but not aggressive directional backdrop for ORCL.

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Options Indicators

ORCL’s implied volatility is 74.36%, and with an IV percentile of 86.06%, current volatility is clearly in the elevated range, indicating that options are priced expensively relative to their own recent history. The IV/HV ratio of 1.15 further suggests implied volatility is running above realized volatility, meaning the options market is embedding a modest premium over actual past movement. The Call/Put volume ratio is 2.89.

Large Trades

A PUT sale worth $3.63 million was the largest displayed trade, with 1,500 contracts sold at the $150.00 strike expiring on January 15, 2027. With ORCL referenced at $151.05, this put was slightly out-of-the-money at the time, making the trade a moderately bullish income-oriented position. Strategically, selling an out-of-the-money put typically reflects willingness to collect premium while expressing confidence that the stock can hold above the strike, or at least that any pullback would remain manageable into expiration.

A CALL buy worth $1.37 million was the other displayed large trade, consisting of 1,400 contracts bought at the $165.00 strike expiring on September 18, 2026. Since the strike sat above the $151.05 reference price, the option was out-of-the-money, so this was a clear upside directional bet rather than a defensive hedge. The buyer paid premium for convex exposure to further gains in ORCL, signaling expectation of a meaningful rally over the longer-dated time horizon.

Overall large-trade sentiment leaned bullish, with total bullish flow of $5.66 million versus $5.01 million of bearish flow, for a net bullish difference of $0.65 million. The directional read is mildly bullish rather than aggressively one-sided: the strongest individual trade was an out-of-the-money put sale that points to confidence and premium collection on downside support, while the highlighted long call purchase adds explicit upside participation. Even though there was notable call-selling elsewhere in the full tape, the aggregate balance still favors the bulls, suggesting institutional positioning is constructive on ORCL with a preference for either holding above key levels or grinding higher over time.

Strategy Reference

With IV elevated, premium-selling strategies are attractive; selling a cash-secured put below the $150.00 support level, such as a put spread to reduce margin, could allow traders to align with the large put seller’s confidence while defining risk.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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