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ORCL: A Look Back at Winners and Losers in Oracle

November 6, 2009 7:52 EST Related Symbols:

you're watching: Mad About Options
What's Mad About Options?

An options-related take on Jim Cramer's latest recommendations and analysis on the latest securities and ETFs getting attention on the Street.

In This Episode

ONN.tv reviews results for bullish and bearish option traders in Oracle Corp. (ORCL)

Mad About Options takes a look at the stocks getting coverage from Jim Cramer, Fast Money casts and other heavy hitters in the financial press and reviews strategies option traders might have used if they agree or disagree with these assessments of the underlying stocks.

The Pick – Oracle Corp. (ORCL)

On the August 10th edition of Mad Money, Jim Cramer said he was bullish on ORCL. The stock is now trading down at $20.90, from $21.25 at the time of that report. So how did the bullish and bearish option investors do?

Bullish Option Traders on ORCL:

On August 12th, we pointed out that bullish investors were buying two January 15 calls for $6.50 and selling two January 21 calls for $2.00, paying $9.00 for the overall position. The spread is now marked at $4.80 each, or $9.60, a winner of 60 cents, with the stock down 35 cents.

Bearish Option Traders on ORCL:

Bearish investors were buying December 20 puts for $1.25 and selling December 22 calls for $1.35, colleting $0.10 for the spread. This spread is now marked at 50 cents for the call and 60 cents for the put. That’s a winner of 20 cents, versus the stock down 35 cents.

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