Oracle Call Traders Target $175 Strike Before Earnings — SkimNews
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- Oracle (ORCL) is set to report fiscal first-quarter earnings Thursday after the close, with shares closing Tuesday at $162.52, up 2.4%
- Options traders are positioning for a large move, with call purchasing driving a bullish bias and notable focus on the $175 strike—nearly an 8% premium to Tuesday's closing price
- Oracle's cloud infrastructure revenue surged 93% to $5.8 billion last quarter, fueled by AI infrastructure demand
- Oracle closed fiscal 2026 with $638 billion in remaining performance obligations, a substantial contracted backlog
- Oracle generated $32 billion in operating cash flow in fiscal 2026, but free cash flow plunged to negative $23.7 billion as the company spent heavily on AI data centers
- The central investor question heading into Thursday's report is whether Oracle's AI cloud revenue growth can justify the massive capital expenditure behind it
Why it matters: Oracle has stacked $638 billion in contracted backlog and posted 93% cloud growth, but the fiscal 2026 cash picture tells a more complicated story: $32 billion in operating cash flow was entirely consumed—and then some—producing negative $23.7 billion in free cash flow as AI data center spending accelerated. Thursday's print tests whether revenue momentum can keep funding that capex, and options traders are positioned for a sharp stock reaction in either direction.
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