Oracle is target of short-term put buyer
Short-term puts are positioning for a possible drop in Oracle by the end of this week.
optionMONSTER's monitoring system shows that 2,000 Weekly 41.50 puts expiring this Friday were purchased for $0.43 to $0.47 at the same time yesterday. This represents fresh buying, as open interest in the strike was only 538 contracts before the session began.
Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)
ORCL fell 0 percent to $41.31 yesterday and is up 3 percent in the last three months. The database maker reported bullish quarterly results on June 16 and is expected to announce its next earnings numbers after the close on Sept. 15.
Overall option volume was about average in ORCL yesterday, with puts outpacing calls by a narrow margin.
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