Update – ORCL Q3 Earnings Call Spread

by CC March 16, 2017 12:05 pm • Trade Updates

On a few of occasions over the last month we have written about Oracle (ORCL), back on February 22nd we detailed a trade idea to isolate Q3 earnings, positioning for a breakout to new highs:

ORCL (42.30) Buy the March10th weekly / March24th weekly 42.5 call calendar for .50
  • Sell 1 March10th 42.5 call at .35
  • Buy 1 March24th 42.5 call for .85

With the March 10th weeklies expired we then updated that trade idea earlier this week. Here was the update:


ACTION – Sell to open the March24th 44.5 call at .20

New Position: Long the ORCL (42.65) March24th 42.5/44.5 call spread for .30 (currently worth .75)

With the stock up 7% today on last night’s report, this position has maxed out, worth 2.00 vs the .20 at risk (and the .50 originally at risk).At this point, it does not make sense to risk the profits of the spread and the position should be closed.