Why Options Traders Are Betting Big on Oracle Stock

Key Points

• Oracle stock's price performance has attracted a new wave of call option buyers betting on even higher prices in the coming months.
• A new investment bill could create the right environment for this to be the case.
• Wall Street analysts and short sellers agree that Oracle stock is headed higher.

Whenever there is a high level of conviction that a certain stock will make a move shortly, investors can observe an anomaly, specifically in terms of volume for that stock. However, not all volume is equal, as share volume is not the same as options volume. In this regard, there is much more at stake in the latter; therefore, it matters more to investors.

For those seeking a signal to potentially trade, looking for unusual call options volume can be a good place to begin a search. Traders who are willing to load up on an unusual amount of call options typically have decided that there is only one way a given stock can go, and that is up.

According to options traders, with leverage and an expiration date creating timing pressure, one stock could be a winner in the coming months.

That stock is deeply rooted within the technology sector, not receiving as much attention as others in the artificial intelligence or cloud computing space, although it is just as important. Shares of Oracle Corp. NYSE: ORCL have performed well enough over the past quarter to attract more attention than before, although there is an even higher ceiling ahead this time.

Price Action Calls for More Bets on Oracle Stock

Even after rising by as much as 87.4% over the past quarter alone, and now trading within 95% of its 52-week high, Oracle stock still offers hope to those willing to take on more leverage and risk to see it claim an even higher high in the coming months.

Up to 7,300 options were traded in a single day for Oracle stock, with over half of that total volume going to calls on the buy side (meaning a bullish expectation). Considering the proximity of this expiration in early August 2025, there must be a particular catalyst in the works for these traders to feel this confident with such a tight time window.

It’s even more important for investors to note that the strike price on these call options is $255 per share, roughly 7% higher than the current stock price. However, it still anticipates a new 52-week high being achieved.

Justifying this trade will require some more research into what the rest of the market thinks and whether there is a specific event that could move Oracle stock.

An Industry Boom Gets More Fuel

Recently, President Trump announced a new $70 billion investment bill to further develop artificial intelligence and data center infrastructure in the United States, reiterating the fact that there is still significant demand for this technology as a service and for development.

While there are other more “obvious” names to benefit from this bill, Oracle stands in a very beneficial place in the technology value chain through its cloud computing services, and that is because more data centers will likely need the cloud capabilities to store and process all of the information thrown at them.

Investors are facing a long-term growth tailwind, with no signs of slowing down anytime soon. However, Oracle shareholders don’t have to wait that long to see gains in their portfolios, and that is where the call options trade signal comes into play.

Markets Are Behind a Higher Price for Oracle Stock

Starting with the most basic form of sentiment gauging, investors can look to Wall Street analysts and see where they are headed with ratings and price targets today. Risking their reputations and careers over the wrong call doesn’t happen often, so an optimistic view on a stock that is trading at new highs needs some conviction to go along.

Conviction was high for Patrick Walravens from JMP Securities, who reiterated a Market Outperform rating on Oracle stock, alongside a valuation target of up to $315 per share. This is another factor calling for a new 52-week high to be made, proving these call option buyers right.

Additionally, based on the stock's current trading price, this analyst is directly calling for Oracle to deliver an additional rally of up to 32% to outperform not only the technology peer group but also the broader S&P 500 index. Another gauge to consider is to check what the bearish traders are doing with Oracle stock today.

Over the past month, up to 9.4% of the company’s short interest has declined, a clear sign of bearish capitulation in the face of all this potential upside, a momentum that could very well propel shareholders into these new highs coming up.