Falling Wedge - filings, earnings calls, financial reports, news

Falling Wedge

Search documents

Options Corner: ORCL Bullish Trade After Breakdown

Youtube· 2025-11-26 14:17

Core Viewpoint - Oracle has experienced a significant decline, down over 40% from its all-time highs in September, but is still up approximately 3.5% year-to-date, indicating a challenging market environment for the company [1][9]. Market Performance - The tech sector has risen about 19.5%, with Oracle lagging behind its competitors such as Salesforce, Amazon, Microsoft, and Google, which have shown a more favorable trajectory [2]. - Oracle's recent performance stands out negatively among its peers, highlighting its struggles in the current market [2]. Technical Analysis - A falling wedge pattern is observed in Oracle's chart, with two downward-trending lines converging, suggesting potential support at current levels [3]. - The stock has bounced from a notable support area, with previous highs around 241 serving as a critical resistance point [4]. - Moving averages indicate a bearish trend, with the 5-day EMA drifting below longer-term indicators, and the RSI is in an oversold condition at 25, below the 30 threshold [5]. Trading Volume and Activity - The point of control for trading activity is near 233, where the stock faced rejection, but it is stabilizing at this level, indicating a potential for recovery [6]. - A significant volume node is identified around the 215 level, which may act as further resistance [7]. Options Strategy - Upcoming options indicate an expected move of under 15% by December 19 and about 18.9% by January 16, aligning closely with the resistance level of 241 [7]. - A bullish call vertical strategy is suggested, involving buying a 200 strike call and selling a 240 strike call, which could provide a risk-managed approach to capitalize on potential upside [11][12]. - The break-even point for this strategy is set at 214, slightly above the current share price, indicating a need for upward movement to realize gains [13].