Stock price
$133.47
-9.7% in 5 days
Strike
$115
Expiry
Oct 30, 2026
32 days
Credit (mid)
$1.835
$183.50 per contract
Breakeven
$113.17
15.2% cushion
Annualized
18.2%
1.60% in 32 days
Sell to open one $ORCL Oct 30, 2026 $115 put for about $1.835 ($183.50 per contract). It reserves $11,500 of cash. Breakeven is $113.17, 15.2% below today's $133.47. The idea dies if $ORCL closes below $120 and loses July's floor.
The setup in 30 seconds
Oracle ($ORCL) sells databases, business software and, more and more, cloud computing for AI. Its stock fell 9.7% in five sessions after it sent a force majeure notice on Project Jupiter, a huge data center campus being built for it in New Mexico.
The business itself just had a strong quarter. Revenue grew 30% and the contract backlog hit $664 billion. The fear is about the cost and timing of AI buildouts, not about demand. That gap between a scared stock and a healthy order book is what puts premium on the table.
What a cash-secured put is
You sell someone the right to sell you 100 shares at the strike ($115) until expiry. You get paid the premium up front and keep the cash to buy the shares aside. If $ORCL stays above $115, the put expires and you keep the premium. If it falls below, you may buy 100 shares at $115, minus the premium you already collected.
The trade
| Item | Value |
|---|---|
| Contract | Sell to open $ORCL Oct 30, 2026 $115 put (ORCL261030P00115000) |
| Days to expiry | 32 |
| Delta | 0.16 (about a 16% chance of finishing in the money, by the model) |
| Bid / ask / mid | $1.79 / $1.88 / $1.835 |
| Limit range | $1.80 to $1.86, limit orders only |
| Cash reserved | $11,500 per contract |
| Breakeven | $113.17 (15.2% below $133.47) |
| Max return | $183.50 per contract = 1.60% in 32 days (18.2% annualized) |
| Max loss | $11,316.50 per contract if $ORCL went to zero |
| Liquidity | Open interest 11,590; spread $0.09 (4.9% of mid) |
Why this stock, why now
Technicals. $ORCL trades at $133.47, under its 20-day ($147.80), 50-day ($142.40) and 200-day ($164.10) averages. RSI(14) is 38.3, close to oversold but not there yet. The sell-off day, Sept 24, traded 56.6 million shares, 1.7 times the 20-day average. The $115 strike sits right at July's floor: a $114.99 close on July 24 and a $114.50 intraday low on July 28. In plain terms: the trend is down, so the strike is parked at the level where buyers last showed up.
Valuation. On Oracle's own fiscal 2027 guidance of $8.10 in adjusted earnings per share, $ORCL trades at about 16.5 times forward earnings. Microsoft ($MSFT) trades near 26.1 times and SAP ($SAP) near 24.0 times. Last quarter revenue rose 30% and cloud infrastructure revenue rose 121%. In plain terms: the market is pricing Oracle like a slow grower even though its cloud unit is more than doubling.
Income. The 30-day implied volatility (IV30) is 52.2%, close to the stock's 60-day realized volatility of 55.1%. So the options are not unusually rich; they simply reflect how much $ORCL has been moving. In plain terms: you are paid fairly for a volatile stock, not overpaid for a calm one.
Calendar. Oracle already reported on Sept 10. The next report is not dated yet; it has come in mid-December in past years, well after the Oct 30 expiry. The $0.50 quarterly dividend has an Oct 9 record date, which matters to shareholders, not to put sellers. This week brings JOLTS (Tuesday), PCE inflation (Wednesday), ISM manufacturing (Thursday) and the September jobs report (Friday). In plain terms: no earnings inside the trade, but a busy macro week can still move rate-sensitive, debt-funded names.
The exit plan
- Take profit: buy the put back near $0.92, about 50% of the credit, which locks in roughly $91.50 per contract.
- Time exit: by Oct 16 (14 days to expiry), close or roll whatever is left rather than holding into the last two weeks.
- Roll trigger: a daily close below $120 means July's floor is under test; roll out in time to a later expiry for a net credit, or close.
- If assigned: you own 100 shares at an effective $113.17. Then sell covered calls at or above that cost, which is the second half of the wheel.
What invalidates the idea
A daily close below $120, or news that Project Jupiter or another Stargate site faces a longer delay or a financing problem. Either would say the July floor may not hold.
What could go wrong
- AI buildout stress spreads. The $18 billion of bank loans on the New Mexico campus reportedly trades below 90 cents on the dollar. More headlines like that could push $ORCL through $115.
- Rates stay high. Oracle funds much of its data center expansion with debt, so a hot PCE or jobs print this week can hit the stock harder than the market.
- Gap risk. $ORCL is 57% below its $313 closing high from last October. Sentiment is fragile, and a gap below the breakeven would leave no time to roll.
Beginner corner
Delta 0.16 does not mean a 16% chance of losing money. It is a rough model estimate that the put finishes below $115. Even then you only lose if $ORCL ends below $113.17, the breakeven. Cash reserved is the full $11,500, so size it as if you might really buy the shares.
This fits wheel sellers who would be happy to own $ORCL near July's low at an effective $113.17. Skip it if a falling stock tied to debt-funded AI spending would keep you up at night.
Sources
- [1]ORCL delayed options quotes (snapshot 09:55 ET) — Cboe · Accessed 2026-09-28 · Tier 1
- [2]Oracle Announces Fiscal 2027 First Quarter Financial Results (Form 8-K, Ex. 99.1) — Oracle / SEC · Accessed 2026-09-28 · Tier 1
- [3]Oracle sends 'force majeure' notice about data center project — stock drops 3% — CNBC · Accessed 2026-09-28 · Tier 2
- [4]Oracle sends 'force majeure' notice to Project Jupiter developers to protect itself from liability — Searchlight New Mexico · Accessed 2026-09-28 · Tier 3
- [5]ORCL daily price history (1 year) — Yahoo Finance · Accessed 2026-09-28 · Tier 3
- [6]Microsoft and SAP statistics (forward P/E) — StockAnalysis · Accessed 2026-09-28 · Tier 3
- [7]Economic Indicators Calendar — Federal Reserve Bank of New York · Accessed 2026-09-28 · Tier 1
This content is for informational and educational purposes only and is not financial advice. Options involve risk and are not suitable for every investor. Do your own research before trading.
Keep YieldCove close
Choose YieldCove as a preferred source for Top Stories in Google Search.
Run the numbers before you trade: the free wheel strategy calculator sizes the whole cycle, and the cash-secured put calculator shows the cash, return and breakeven of one put.



