Market Overview

Carter Worth And Mike Khouw's Oracle Corporation Trade


On CNBC's Options Action, Carter Worth spoke about Oracle Corporation (NYSE: ORCL) and he explained why the stock should trade higher. The stock has lagged the market and Worth believes it is going to catch up with peers.

Worth presented a chart and showed that Oracle 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 -- now it is $2.43. Worth believes the stock is going to break out and he sees it at $52.

Mike Khouw, meanwhile, thinks revenue has not been growing that fast for the company, but Oracle is cheap in comparison with the market. He wouldn't chase the stock that has rallied as much as Oracle 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.


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Posted-In: Carter Worth CNBC Mike Khouw Options ActionMedia