$ORCL bulls keep scoring at highs

Upside option positions are seeing even more significant gains as Oracle (ORCL) sets new highs today.

On Jul. 20, Market Rebellion’s Unusual Activity Service detected the purchase of 3,900 Weekly $88 calls, expiring tomorrow, for $0.85 to $1.45 with shares at $87.35. Open interest in the strike before the trade occurred was just 2,039 contracts, showing that this was a new position.

Those calls sold for as much as $3.11 today, more than 2 times their purchase prices. The stock rose 4.25% in the same time frame, showing how options can far outperform moves in their underlying shares.

This marks the third winning trade in the name to be posted on Market Rebellion this month.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

ORCL was last up by 1.15% at $90.72 in afternoon trade, setting a new all-time high of $91.14 earlier. The cloud-computing company is next estimated to report earnings on Sep. 15.