Mike Khouw Sees Unusual Options Activity In Oracle Corporation

On CNBC's Options Action, Mike Khouw spoke about bullish options activity in Oracle Corporation ORCL. He said that options trading volume was two times higher than the average daily volume and bulls outnumbered bears 2 to 1. The most active options were the June weekly 45.5 calls as over 7,000 contracts were traded for $0.50. Traders were making bets that the stock is going to be above $46 by the end of the week. Oracle Corporation is reporting earnings on Wednesday and options are cheap in comparison to what traders usually pay ahead of earnings, so Khouw believes that buying the June weekly 45.50 calls is a good way to make a bullish bet.