Carter Worth And Mike Khouw's Oracle Corporation Trade

On CNBC's Options Action, Carter Worth spoke about Oracle Corporation ORCL and he explained why the stock should trade higher. The stock has lagged the market and the sector and Worth believes that it is going to catch up with its peers. Worth presented a chart and showed that Oracle Corporation is currently trading $3 off its highs from September 2000. He also compared fundamentals in two periods and showed that earnings per share was $0.45 then and now it is $2.43. Price-to-earnings was 103 and now it is 17.9. Worth believes that the stock is going to break out and he sees it at $52. Mike Khouw thinks that revenue has not been growing that fast for the company, but Oracle Corporation is cheap in comparison with the market. He wouldn't chase the stock that has rallied as much as Oracle Corporation did, but he would use options to make a bullish bet. Khouw would buy the September 45 call option for $1.70. The break even for the stock is at $46.70 or approximately 7.5 percent higher than the current price.