On Friday’s CNBC’s Options Action, the crew analyzed the performance of Oracle stock. Oracle (ORCL) has underperformed the tech sector over the past year by roughly 50% but has the potential to catch up going into earnings. Oracle has completed a cup and handle formation which points to a bullish breakout higher. Coupled with a break above a major resistance level last year at $47, sets it up for a breakout higher going into earnings on Monday. Expecting ORCL to beat on earnings, Michael Khouw suggests selling an April 52.5 Call Vertical for a $1.45 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: ORCL Options Action