Looks like Larry Ellison should start looking for another island to buy, as his company Oracle
(NASDAQ:ORCL), reports earnings today after the bell and expectations are pretty high. ORCL is currently beating the moving averages, ranging from the 50-day to the 200-day. It is less than $1 away from making new 52-week highs. Whispers are that ORCL will present earnings of $0.62 per share on revenue of $9.01 billion, beating the Street's expectations, which will almost guarantee the stock making new highs going into the end of the year.
As of today, ORCL opened at $32.48 and has continued to maintain the late November rally from $29.58. ORCL has been known for outlasting and outcompeting companies in a similar cloud (no pun intended), purchasing nine companies throughout 2012 and continuing to grow throughout the year, up almost 25% YTD. ORCL is operated pretty conservatively to boot; therefore, 2013 should not present many obstacles for the company to overcome, with all the financial and government news currently swirling in the market. The past four earnings have generated an average move of 4.2% and current at-the-money (ATM) straddles are predicting an estimated 4.0% move, right in line with the previous averages. ORCL has a very good P/E as well when compared to other competitor companies. This is always a positive signal when looking to take a bullish position. This is one earnings play among many this week that I will be looking to play
as we go into the close of 2012.
My trade in ORCLE:
Buying the 33-34 Bull Call Spread for $0.27
$27 per 1 lot
$73 per 1 lot
No positions in stocks mentioned.