Can the Oracle miracle be replicated? How can options players "hedge and make money" at the same time?
Wow, in the blink of an eye, it's time for $Oracle(ORCL.US) to release its earnings report! Today after the U.S. market closes (5 AM Beijing time), Oracle is set to release its Q2 FY2026 earnings report. Do you still remember Oracle's stellar performance after its September earnings report? The myth of a 36% overnight surge brought global attention to this veteran cloud service provider.
But just three months later, its stock price has returned to pre-Q1 earnings levels! Is this a market reassessment of its AI-related business after cooling off? Or is it a buying opportunity at a low point? Options Master believes everyone is eager to take action and may have already bought Calls to "go for a big win."
Don't panic! The options veteran will teach you a trick to easily capture profit opportunities using spread strategies! Longbridge now supports one-click deployment of spread strategies!
🎯【Firmly Bullish】
Oracle's stock price, powered by AI, is far from its current $221? Don't act impulsively! Before buying a single-leg Call, take a look at this "Bull Call Spread" strategy that can help you earn more easily and sleep more soundly at night.
(After all, earnings reports are such a high-stakes game—stock prices can swing wildly overnight! It hurts to sell too early, and it hurts even more to miss the peak!)
👉 Try the "Bull Call Spread" combo! Buy a reliable Call and sell an overpriced Call.
The following options examples are for educational purposes only, demonstrating how to construct a Bull Call Spread strategy using options combinations. The data is historical, and Oracle's stock price was at $221 at the screenshot time. These examples are solely for illustrating the basic principles of strategy operation and do not constitute any investment advice or guidance. When investing, please carefully select appropriate options parameters based on your risk tolerance, market conditions, and specific needs. Investing carries risks; proceed with caution.
For example, if you expect Oracle's post-earnings stock price to reach $260 or higher, I believe you'd aggressively buy the 250 Call to chase returns. But! This Call requires the stock price to climb to $253.1 just to break even—only gains beyond that count as "profit."
At this point, a clever idea strikes you: since buying the 250 Call costs $315, why not find a similarly priced alternative that requires less price movement to achieve the same profit?
Upgrade your strategy with a Call Spread! Try buying a more conservative 240 Call and selling a more "overhyped" 260 Call to form an options combo:
Options Master is surprised to find that, with roughly the same $330 in premium paid, this combo breaks even at $243.33! That's a full $10 wider "profit zone" compared to the original 250 Call, potentially adding $1,000 in options returns!
Using options combos, you can master the "art of small bets for big wins" during earnings season!
🛡️【Firmly Bearish】
👉 Is the quarterly pullback a sign of the AI wave receding? A rational market reaction? If you're bearish on Oracle, believing its earnings report will strip away the "fig leaf" of AI hype,
then you can also use spread strategies! Place bets on a post-earnings drop with the "Bear Put Spread."
The following options examples are for educational purposes only, demonstrating how to construct a Bear Put Spread strategy using options combinations. The data is historical, and Oracle's stock price was at $221 at the screenshot time. These examples are solely for illustrating the basic principles of strategy operation and do not constitute any investment advice or guidance. When investing, please carefully select appropriate options parameters based on your risk tolerance, market conditions, and specific needs. Investing carries risks; proceed with caution.
If you think Oracle's rebound from the $185 low over the past three months is institutions pumping the stock pre-earnings to short and dump, you can buy a conservative Put and sell a "unlikely-to-exercise" Put to DIY your own spread strategy:
Here, we can see this combo starts profiting once the stock falls below $212.56! If we spend about the same premium to buy a $210 Put, the stock would need to drop to $203.75 to break even......
Summary:
Oracle creating one miracle doesn’t guarantee a second "miracle night"!
Using single-leg options to "gamble" might earn you a lot when you guess the direction right and catch a favorable market, but building higher-probability options with combo strategies will take you further in the market!
Follow Options Master to learn smarter ways to play the options market～
【To Be Continued】
$Oracle(ORCL.US) is just the appetizer this week—the real battle is $Broadcom(AVGO.US)'s earnings report after tomorrow's U.S. market close!
Google Chain! AI! TPM! The challenger to NVIDIA's model!
Stay tuned—same time tomorrow, don't miss it!
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