Oracle’s Volatility to Increase?

Oracle (NASDAQ: ORCL) is seeing an interesting options trade this morning with quite a bit of volume as well. I am seeing the June $24/23 strangle purchased for $2.75 11,700 times; this action is below the open interest on those strikes, so it appears that the options positions have been closed out. This is usually an indication that volatility will uptick in the name very soon (and it has been slowly rising along with the overall Nasdaq 100 decline).

Oracle has pulled back sharply over the past week or so, but still remains on top of a bullish upward trend. The above trade would suggest that the stock will break significantly one way or the other at this point, thus the reason for closing out a sort vol position. The next support level on the downside would be $22.00 and the next resistance level above would be the 52-week high of $25.64.