Two Ways To Play: Looking Into Oracle's Future
Strengthen your portfolio in good times and bad.
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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