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Oracle Shares Climb to Record, Boosting Options Volume Amid AI Optimism

Luzi Ann Santos joined discussion · Jun 12 10:57
$Oracle(ORCL.US)$ shares climbed to a record Wednesday, helping boost the appeal of its stock options amid expectations that the cloud software provider could benefit from increasing demand from artificial intelligence applications.  
On Tuesday, Oracle Chairman Larry Ellison said he expects the company's cooperation with $Microsoft(MSFT.US)$ to "turbocharge" its cloud data base growth. He also said the Oracle database could be available with the $Alphabet-A(GOOGL.US)$'s Cloud in September.
Hopes over the demand prospects for training AI large language models in Oracle Cloud overshadowed the company's disappointing fiscal fourth quarter results released after the market closed Tuesday. The company reported adjusted earnings of $1.63 per share and revenue of $14.29 billion for the three months ended May 31. That trailed the average estimate of $1.65 for the adjusted EPS and revenue of $14.57 billion, MT Newswires reported, citing analysts polled by Capital IQ.
Oracle Shares Climb to Record, Boosting Options Volume Amid AI Optimism

Shares soared more than 13% to $140.29, an all-time closing high. Oracle was the day's biggest gainer on the $S&P 500 Index(.SPX.US)$, outpacing the benchmark's 0.9% rise. More than 435,000 options were traded, landing Oracle in the 10th place among the stock options with the highest volume.
Financial giants were also spending millions of dollars in options, helping boost the total volume. At 10:25:42 a.m., two block trades were posted. One of them involved call options that give the holder the right to buy 160,000 Oracle shares at $125 each by June 21. The seller stands to collect a premium of $2.28 million for writing those call options which were executed near the bid price, signaling its bearish tendency.
Oracle Shares Climb to Record, Boosting Options Volume Amid AI Optimism
The other trade gives the holder the right to buy the same amount of Oracle shares for $140 each, with the call options expiring on the same date. The buyer paid a $296,000 premium for the trade that was executed near the asking price, signaling its bullish tendency.
Sentiment on these block trades is mixed at a time when 12 of 15 technical indicators are signaling that the stock is overbought and could be trending bearish. Still, Oracle has seen a net inflow of $336.5 million, driven by funds from small and large orders that fueled the rally.
Source: moomoo PC app
Source: moomoo PC app
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