Options Corner: ORCL's Roundtrip Since Last Earnings

Core Viewpoint - Oracle is set to report its latest quarterly results, with analysts expecting earnings of $1.63 per share and revenue exceeding $16 billion, while investors are particularly focused on the company's capital expenditures and debt levels in relation to the AI sector [1] Financial Performance - Oracle's shares surged over 35% following its last earnings report but have since declined by 36% from those intraday highs [1] - The stock is currently trading around $223, with a notable short-term upward trend after previously hitting a low of $189 [5][6] Market Position - Oracle is performing comparably to the XLK tech ETF, with its debt situation being a critical factor in its ability to capitalize on new technology advancements [3] - In the cloud space, Oracle is positioned in the middle of the pack, with Google being the outperformer and Salesforce lagging behind [3][4] Technical Analysis - The stock has a significant resistance level around $234, which is the point of control for trading volume, and another notable level near $220 [6][7] - The expected price movement post-earnings is projected at approximately ±9%, equating to nearly $21 [10] Options Strategy - A bullish call diagonal strategy is suggested, involving the purchase of a slightly in-the-money 220 call option and selling a 245 call option, aiming for profitability above the $225 level [12][14] - The strategy capitalizes on the volatility difference between options, with a potential profitability apex near the short strike of $245 [14][15]