Option Focus | Oracle’s $582,900 Out-of-the-Money Call Sale at $155 Strike Signals Premium Collection and a Bearish Cap on Upside Through 2026

Option Witch
4 hours ago

Oracle closed at $149.20, rising 0.43% from the previous close.

The session’s most significant options flow was a $582,900.00 out-of-the-money call sale at the $155.00 strike, indicating traders are collecting premium while capping upside expectations through September 2026. The trade size and direction point to a bearish-to-neutral stance rather than positioning for a breakout, suggesting limited conviction in any sustained rally above that level.

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Options Indicators

Oracle’s implied volatility is 53.82%, while its IV percentile stands at 21.12%, which suggests current volatility is on the low side relative to its own recent range and that options are cheaply priced rather than expensive. With the IV/HV ratio at 1.07, implied volatility is only modestly above historical volatility, indicating option premiums are not showing an aggressive volatility markup at the moment.

The Call/Put volume ratio is 3.23.

Large Trades

A CALL sale worth $582,900.00 was the standout large trade, with 2,900 contracts sold at the $155.00 strike expiring on 2026-09-25. With ORCL referenced at $149.20, the option was out of the money at the time of the trade, making this a bearish to moderately capped view that the shares are unlikely to rally decisively above that level by expiration. Strategically, selling this call suggests premium collection and a willingness to lean against further upside, while also expressing a view that near-term gains may remain limited.

Overall, the large-trade flow points to a bearish sentiment in ORCL. The fact that the only notable bulk order was an out-of-the-money call sale indicates traders were more interested in fading upside and harvesting premium than positioning for a breakout, which implies restrained expectations for the stock’s advance over the relevant horizon.

Strategy Reference

For a low assignment probability, a call seller may prefer a higher OTM strike, such as the $165.00 or $170.00 strike expiring in September 2026, but will receive less premium; alternatively, a bear call spread using short $155.00/long $165.00 strikes can reduce margin requirements while still expressing a capped upside view.

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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