Option Trade 
Oracle Corporation (NYSE:ORCL) Calls
Thursday, 16th June, 2016

** OPTION TRADE: Buy the ORCL AUG 2016 40.000 call at approximately $0.70. Place a pre-determined sell at $1.60.

Note: No protective stop losses added -- but if you wish to do so make it $0.30.

by Ian Harvey

June 16, 2016

Oracle Corporation (NYSE: ORCL), will report its fiscal fourth-quarter results today, June 16, after market close. The company is forecast to earn $0.82 per share, up from $0.78 during the same period last year. The stock is up 6.2% on the year.

Oracle has put together a streak of three straight earnings beats, and a fourth beat could be the catalyst the stock needs to regain its footing and erase some of its recent losses. The company’s biggest competitors, Microsoft (MSFT) and IBM (IBM) have already both reported, with MSFT posting a negative earnings surprise while IBM posted better than expected results. The street has a slightly higher whisper number target for ORCL, forecasting $0.83, which could suggest that the company will indeed post another earnings beat.

At the same time, sentiment on the name remains solid. Shares go for about 14 times forward earnings on a growth forecast of 7%.

The stock has P/E of 19, so there is limited downside risk on an earnings miss.

Oracle has a market cap of $161.22 billion and a PE ratio of 19.10. The firm’s 50-day moving average price is $39.60 and its 200-day moving average price is $38.28. Oracle has a one year low of $33.13 and a one year high of $45.24.

Positive Input

On Jun 15, 2016 Oracle Corporation and Snapchat announced a partnership to measure the impact of digital advertising in the physical world. By teaming together, Oracle Data Cloud and Snapchat measure incremental store sales resulting from marketing campaigns run on Snapchat. By analyzing the impact of campaigns on in-store sales, Oracle Data Cloud will help consumer packaged goods (CPG) advertisers quantify and improve their ongoing marketing efforts on Snapchat.

Oracle Data Cloud also released new research analyzing the in-store sales lift from 12 CPG campaigns run on Snapchat for leading cosmetic, personal care, cleaning, packaged food, and beverage brands.

It feels like ORCL has been transitioning to cloud-based services forever. It's a tough process that weighs on results, but it is indeed working. Investors saw promising acceleration in its cloud business last quarter.

Oracle Co. was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued to investors on Wednesday.

Also, Oracle Co‘s stock had its “neutral” rating reiterated by Wedbush in a report released on Monday. They currently have a $40.00 target price on the enterprise software provider’s stock.

Also, several other equities research analysts have recently commented on the company.

• Drexel Hamilton reaffirmed a “buy” rating and issued a $51.00 target price on shares of Oracle in a report on Monday, May 2nd.

• Credit Suisse restated a “buy” rating on shares of Oracle in a research note on Saturday, March 12th.

• Deutsche Bank reaffirmed a “hold” rating on shares of Oracle in a report on Saturday, March 19th. Oppenheimer reiterated a “market perform” rating on shares of Oracle in a research note on Wednesday, March 16th.

• Finally, Citigroup Inc. reissued a “hold” rating on shares of Oracle in a report on Wednesday, March 16th.

Four investment analysts have rated the stock with a sell rating, fourteen have given a hold rating and twenty-five have issued a buy rating to the stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $44.13.

Harvey’s Options Volatility Indicator

Conclusion

With a median target price of $43.86, ORCL stock has implied upside of 13%.

ORCL has made great strides in its transition to cloud-based services.

Therefore, based on the facts above, and Harvey’s Options Volatility Indicator, the following option trade is recommended…..

** OPTION TRADE: Buy the ORCL AUG 2016 40.000 call at approximately $0.70. Place a pre-determined sell at $1.60.

Note: No protective stop losses added -- but if you wish to do so make it $0.30.

”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.



Back to Stock Options Made Easy Home Page

Back to Option Trades from Option Trade – Oracle Corporation (NYSE:ORCL) Calls - Thursday, 16th June, 2016



Get all the latest options news from
STOCK OPTIONS MADE EASY with our FREE newsletter


Enter Your Email Address

Enter Your First Name








Search Stock Options
Made Easy



Enjoy Relaxed or Fast-Paced Trading? Choose your Membership Style...

Whether you prefer to take a laid-back approach to your trading,

or to charge ahead in your options trading,

 Stock Options Made Easy Armchair Trader and Cut-to-the-Chase Trader Memberships put everything you need to succeed at your fingertips for just  $39 or $79 per month.







Subscribe to our FREE
newsletter for all the latest options news!


Enter Your Email Address

Enter Your First Name