Reddit User Gains +3000% From Oracle Options

Bryant Le

Many individual investors — many of them, followers of a popular, juvenile, foul-mouthed Reddit page called Wall Street Bets have gambled their savings for the chance of massively beating the stock market. One reddit user, u/Professsssssssor gambled about $2500 into Oracle call options expiring on December 10th. (Source found here.)

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Oracle has been a steady performer for the past few months, fluctuating between $85 per share and $100 per share. However, in the past few weeks, Oracle steadily declined from its all time highs of $100 down to around $88 per share. On December 9th, Oracle's price ended the day at $88.77.

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Oracle on Trading View

However, Oracle's earnings was after hours on December 9th, and many investors gambled that Oracle would have a strong performance on earnings. And as hoped, Oracles earnings and revenue were better than expected, beating earnings expectations by 8% and revenue expectations by 1%. This was the catalyst that many investors hoped to see!

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Trading View

In contrast to buying shares of Tesla, buying call options means that the user has bet that Tesla prices will massively move and would definitely be higher than a certain out-of-the-money price by a given expiration date. (This is a lot of conditions to check off.) You can learn more about options on Investopedia.

The benefit is that the potential gains are unlimited; however, the downside is that the entire investment can potentially be lost if the conditions are not met by the expiration date. This Reddit user bought about $2500 of Oracle options, betting that Oracle would be higher than $97 the next day given that it was $88 on Decmber 9th.

As hoped, not only did Oracle surpass $97 on December 10th, but Oracle reached an all time high of $106 and ended the day at $102. This Reddit user had a return on investment of 3000% by turning their $2,500 into $76,000! Congrats to this user for their victory. And as quoted

$ORCL daddy is back in business
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u/Professssssssor

Just as a reminder, invest with what you can lose. And none of what I provide is financial advice.

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