Oracle Shares Rally to Record After Earnings Beat, Boosting Appeal of $160 Call Options

Shares of the company gapped up Tuesday, climbing as much as 14.8% to an intra-day record high of $160.52. While the stock pared gains to 12% by noon, the rally sent the $160 call options closer to being in-the-money. About 23,860 contracts changed hands as of 12:45 p.m. in New York, more than five times the open interest. That makes those calls the most active Oracle stock options among contracts across 17 expiration dates stretching through Dec. 18, 2026.

After the market closed on Monday, Oracle reported that its adjusted earnings climbed 17% to $1.39 in the fiscal first quarter that ended Aug. 31. That exceeded the $1.33 expected by analysts, according to estimates compiled by Bloomberg. Revenue gained 7% to $13.31 billion, beating estimates that called for $13.26 billion.

Analysts including Bank of America's Brad Sills, KeyBanc's Jackson Ader and Stifel's Brad Reback raised their price target for the stock, Benzinga reported.

"The biggest news of all was signing a MultiCloud agreement with AWS—including our latest technology Exadata hardware and Version 23ai of our database software—embedded into AWS cloud datacenters," Oracle CEO, Safra Catz said in the company's earnings release Monday. "AWS customers will get easy and convenient access to the Oracle database when we go live in December later this year."

That "could further bolster its cloud-infrastructure fundamentals," Bloomberg Intelligence analysts Anurag Rana and Andrew Girard wrote in a note Monday.

Not everyone is positive though. Five bearish options trades with a combined premium of $3.5 million were posted around the first half of the trading day. The biggest of them was a multi-leg transaction that involved an individual or an entity selling $175 call options expiring on Oct. 18 and $155 call options due Sept. 20 and buying $165 call options also expiring Oct. 18.  

Technical indicators tracked by moomoo are also flashing warning signals. Eleven of the 15 gauges are signaling that the stock could now be overbought, and the trend may turn bearish. That comes as fund inflows into the stock outpaced outflows by $76 million.

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