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Two Ways To Play: Looking Into Oracle's Future


Strengthen your portfolio in good times and bad.

According to Bloomberg, Citigroup said call options on Oracle (ORCL) should be sold because the stock may stay below $25 for the next quarter.

Citigroup analysts Mitchell Revsine and Brent Thill wrote in a note recommending selling the September $25 calls on the third-largest software maker because the stock hasn't closed around $25 since February 2001.

"Given the weaker macroeconomic backdrop and the first-quarter's seasonally weak nature, we believe the company will issue conservative guidance which will weigh on investor sentiment," the analysts wrote.

Oracle reports results next Wednesday, after market-close. Analysts are expecting $0.44 EPS on revenues of $6.857 billion.

From the Bull Pen: Bulls looking for a trade might consider the upside in Corning (GLW); sell-stops may be set near $26.

From the Bear Cave: Here at the 'Ville, we've talked about the headwinds that the tech sector may face. Bears wishing to play the downside in Oracle could consider buy-stops above the $23 level. The tech ETF (XLK) is also an option; buy-stops above $25.
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No positions in stocks mentioned.

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