Option Focus | Oracle's $42.84 Million Double Short Put Sale Collects Premium at Deep ITM Strikes, While $9.21 Million Put Buy Signals Bearish Institutional Caution

Option Witch
Oct 16

Oracle closed at USD 134.47, up 3.00%.

Large options activity featured a $42.84 million net-credit double short put sale at deeply in-the-money strikes, alongside a $9.21 million put purchase that signals bearish institutional caution. The mix of premium collection and defensive put demand suggests a cautious-to-negative tone beneath the surface.

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Options Indicators

Oracle’s implied volatility is 58.16%, and with an IV percentile of 38.25%, current volatility sits in a neutral historical range rather than an elevated one. Combined with an IV/HV ratio of 1.08, options appear to be priced close to realized volatility, suggesting premiums are not especially cheap or especially expensive at the moment.

The Call/Put volume ratio is 1.23.

Large Trades

A spread-style put sale collecting $42.84 million in net credit was the largest displayed trade, structured as a same-direction double short put combination. The trader sold the December 18, 2026 $240.00 put and the March 19, 2027 $260.00 put, with both strikes deeply in the money versus the $134.47 reference stock price. Because the structure contains two sold puts, it is best read as a premium-collection strategy rather than a pure outright downside bet, with the rich net credit indicating a willingness to absorb downside exposure while positioning for stabilization or less-bearish-than-feared price action over time. Even so, the use of in-the-money short puts at elevated strikes gives the trade a neutral-to-bearish tone, reflecting either aggressive yield harvesting or a readiness to accumulate risk at levels far above spot.

A put purchase worth $9.21 million was the second displayed large trade, with the buyer taking 2,225 contracts of the October 16, 2026 $175.00 put. This strike is also in the money relative to the $134.47 reference price, which makes the contract highly sensitive to continued weakness and gives the position clear bearish utility. Strategically, this looks like a straightforward downside hedge or a directional bearish wager, expressing concern that Oracle may remain under pressure or decline further before expiration. Overall, the bulk-order flow leans clearly bearish: while some large trades were structured as short-put premium collection, the dominant character of the tape is still defensive and downside-focused, with substantial put demand and bearishly tilted positioning suggesting institutional sentiment remains cautious to negative on Oracle.

Strategy Reference

For a lower assignment probability, a seller could consider the December 18, 2026 $95.00 put, which sits well out of the money versus the $134.47 spot; alternatively, a bear put spread such as buying the $140.00 put and selling the $110.00 put may reduce margin requirements while maintaining downside exposure.

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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