Oracle (ORCL) reported earnings after market close today, and Wall Street didn’t like it. The stock is down 8% after hours, as is typical for Wall Street’s hysterical overreaction these days. But that could make Oracle a good options play.
The stock traded at $115.13 at the close and crashed 8.82% to $104.97 in after-hours trading after weaker sales than expected. This again shows how short-sighted investors are.
But, this behavior provides an excellent opportunity for savvy investors and traders who can take advantage of the panic selling. As of now, I cannot say whether the stock would fit nicely into my Crumbs strategy or not. I will have to evaluate it when the market opens tomorrow morning and new option prices will be available. If the premiums on 2 SD strikes (close to 20% below the current market) will be favorable, this will be a great opportunity to grab some money from Wall Street panicking investors.
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