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Oracle Corp. (ORCL) develops, manufactures, markets, hosts and supports database software, middleware software, application software, and cloud infrastructure. The company also provides hardware systems including computer servers, storage, and networking products and related services.

ORCL Earnings Trade

This is an earnings trade, wherein we plan to buy call options, anticipating price will rise in the week before earnings. We plan to exit prior to the company’s earnings announcement, scheduled after hours on June 16. Presently Implied Volatility (IV) is near 40% and expected to climb along with price into earnings.

We bought 06/19 55.00 and 07/02 59.00 Calls on Monday. We plan to add if the stock keeps rising. Past performance does not guarantee results, so be sure to monitor this trade while using a 30-40% stop.

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The latest report saw prices drop before earnings. We disregarded that statistic as most stocks succumbed to Covid-19 inspired selling.

Using the 4 quarters prior, the marketsmith chart shows three periods rose into earnings, while one period faded. A simple 75% probability is what interests us at this juncture. If statistics and probabilities hold, and we see price action rising into next week, our chances remain well-grounded on this trade.

The most recent announcement was on March 12, 2020. Prior to the announcement most stocks were held captive as bears sold everything. That said, ORCL did beat.

Oracle (ORCL) reported 3rd Quarter February 2020 earnings of $0.99 per share on revenue of $9.8 billion. The consensus earnings estimate was $0.95 per share on revenue of $9.8 billion. The Earnings Whisper number was $0.98 per share. Revenue grew 1.9% on a year-over-year basis.

The company said during its conference call it expects fourth quarter non-GAAP earnings of $1.20 to $1.28 per share on revenue of $10.91 billion to $11.36 billion. The current consensus earnings estimate is $1.23 per share on revenue of $11.31 billion for the quarter ending May 31, 2020.

Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we navigate the current environment. We’ll update you on the progress of the ORCL earnings trade during the day. Watch, listen and trade with us from 9:20 AM to 4:15 PM Monday through Friday.

Happy Trading, 


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