Bullishness in Oracle (NASDAQ: ORCL)

During morning trading, an investor expressed interest in Oracle Corp. (NASDAQ: ORCL) later-term calls, and the action seems to be bullish.

At 10:30 a.m. EST, it looks like an ORCL option investor bought 5,000 out-of-the-money September 27 calls for the ask price of 93 cents per contract. Investors will make money if ORCL shares close higher than $27.93 at September options expiration, or if the calls rally prior to expiration with a rally in the shares. Current open interest of these later-term calls is 1,400 contracts, indicating investors traded these options to open and expressed bullishness on the application software company. These calls have dropped nine cents so far on the day, and have an implied volatility of 25% compared to a 30-day historical volatility of 21% (the buying action we saw this morning most likely pushed up implied volatility).ORCL shares have dropped 35 cents, or more than 1%, to $24.79 so far today, and the company is due to announce earnings on March 25 after the market closes (analysts estimate earnings of 38 cents a share). ORCL did not announce any  news today that could have accounted for the slight decline in the stock.