Oracle Corp. (NASDAQ: ORCL) opened at $18.73. So far today the stock has hit a low of $18.73 and a high of $19.10. As of 11:02, Oracle is trading at $18.99, up $0.26 (1.4%).After hitting a one-year high of $19.75 in November, the stock dipped down over the next few months, but has been trading a bit higher again since bouncing off support at $16 in February. After retreating for four consecutive days, the stock opened with a bit of a bounce this morning, along with several of its competitors. With no major news in the sector this morning, bargain-hunting investors are likely responsible for the rebound as they crowd into the faltering stocks at what they believe to be possible bottoms. Recent technical indicators for Oracle have been bullish and deteriorating slightly, while S&P gives the stock a very positive 5 STARS (out of 5) strong buy rating.
For a bullish hedged play on this stock, I would consider a September bull-put credit spread below the $17 range. Oracle hasn't been below $17 since March and has shown support around $18.50 recently. This trade could be risky if we see a summer swoon again in the broader markets, but even if that happens, Oracle could find some historical support above 16 and we have until September for the stock to bounce back.
Brent Archer is an options analyst and writer at Investors Observer. DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls a position in ORCL.
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