Peering Into Oracle's Crystal Ball: After Post-Earnings Surge, Options Market Reveals Key Trading Levels

Shares of Oracle Corporation ORCL surged nearly 6% on Monday following the release of strong fourth-quarter earnings, and the stock continued its upward momentum with an additional 3.63% gain in extended trading. The company’s revenue in the quarter reached $13.8 billion, marking a 17% annual increase and surpassing the average analyst estimate of $13.73 billion, according to Benzinga Pro.

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Oracle’s stock has experienced a notable 19% surge over the past month, prompting investors to assess its future potential. To gauge potential support and resistance levels, let’s delve into the options market outlook:

1. Resistance: Options expiring on Friday reveal significant open interest accumulation at the $120 Call strike, suggesting this level could act as a resistance point in the near term. With Oracle’s stock closing at $116.43 on Monday after a solid rally, traders may anticipate limited upside for the shares in the short term.
2. Support: On the downside, relatively higher open interest accumulation is observed at Put strikes ranging from $100 to $105, indicating potential support in this range in the event of a sell-off. As open interest figures continue to evolve, more clarity is expected to emerge regarding support levels.

While open interest figures provide insights into support and resistance, it’s crucial to note that significant stock price movements can be triggered by major news events or macro factors, leading to subsequent shifts in open interest numbers.

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