Markets· August 17, 2026 at 05:30 p.m.
Institutional Investors Sell Covered Calls on Oracle Corp, Offering High Yield and Downside Protection
Key takeaways
- Investors bought over 4,000 call options at a strike price of $280.00
- The premium paid by buyers is $26.05
- Analysts have lowered their price targets to an average of $259.46
Oracle Corporation (ORCL) has seen a surge in unusual long-dated call options, with some investors purchasing over 4,000 calls at an out-of-the-money strike price of $280.00, according to Barchart's Unusual Stock Options Activity Report. This volume is more than 22 times the prior number of calls outstanding at that strike and expiring on Sept. 15, 2028. The premium paid by buyers for these options is $26.05, implying a breakeven point of $307.55, or 106% over today's price. However, analysts have lowered their price targets in the last two months, with an average of $259.46, well below the call strike price. It is likely that these trades are initiated by existing ORCL investors selling covered calls, offering them an annualized 8.82% expected return and potential upside of 93.26%. This strategy also provides downside protection against a potential drop in ORCL stock.
