Oracle Corp. (ORCL) reports on Thursday, March 25, and it doesn’t really matter what analysts expect from ORCL, because the company hasn’t missed an earnings estimate in forever.
So don’t expect any surprises. And maybe that’s a good thing.
Here’s a stock that consistently meets or beats earnings, and takes the guesswork out of what will happen come Thursday afternoon.
Oracle is simply a solid company with a solid earnings track and a nice-looking chart.
The shares have been on a run for the past week, and haven’t closed a day below their 20-day moving average since mid-February. It hasn’t been a spectacular rise, just steady and strong — about 11% in the past month.
The next test is the January peak around $25.60, just above the current share price. The last time the stock tested those waters was in early 2001.
The other thing I like about Oracle is the put/call ratio, which is spiking. Note in the chart below that several similar spikes have preceded solid gains.
As for open interest, the stock price sits above the peak call strike (at $25), while put support below is strong at the $24 strike.
It’s rather surprising that options players are seemingly trying to call a top on a strong stock. But that’s OK with us. We like doubters for our bullish plays.
If Oracle can bust through the January top (and there’s no reason to think it can’t), the path higher is clear of obstacles. We’re not looking for earnings to really help, although the shares have tended to do well after recent reports. ORCL simply looks like a solid bullish play with or without earnings, so consider some call options on the stock.
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