Peter Smith
● Oracle Corporation (ORCL) is playing out just as predicted, filling a price gap that opened earlier this quarter. Trading around $277, the stock is retracing into the $260–$280 zone.
● In their recent update, Strats Labs noted, "Price is filling the gap as expected. If you're following the updates, we have closed call ratio spreads and iron condors in profit. May take another entry soon if opportunity presents itself." That's the kind of confirmation options traders love to see—forecast validated, positions closed green.
● The question now is whether Oracle can hold the line once the gap's filled. If it struggles to stay above $270, we could see further weakness toward $260, which might shake out some short-term speculators and add volatility to tech stocks. But if support holds here, this pullback could be the setup for a bounce back toward $300.
● So far, derivatives traders have come out ahead. Call ratio spreads and iron condors worked beautifully as the stock drifted lower, letting traders bank gains from declining volatility and time decay. Now they're watching for signs of a base around $260–$270 to potentially jump back in.
● Despite the near-term pullback, Oracle's fundamentals remain solid. The company's riding momentum from AI infrastructure and cloud partnerships, and most analysts still see long-term upside driven by AI adoption and database growth.
Peter Smith
