Dip Buyers vs Put Holders: Options Signals to Watch

Two major software names are generating the most interesting options signals this Friday. ORCL and ADBE sit at the centre of a tug-of-war between bears and bargain hunters.

Oracle is enduring its worst week since 2002. Despite the price pain, ORTEX stock scores tell a different story. The momentum score climbed from 48 to nearly 70 over the past month. Total score sits at 74.8 out of 100. That divergence — falling price, rising fundamentals score — is exactly the setup that draws call buyers. Oracle's options chain runs 14 expiry dates out to September. The Sept 18 contract is attracting particular attention from longer-dated traders.

ADBE is a different animal. Leadership exits overshadowed an earnings beat. Short interest sits at 4.8% of free float. Bearish options remain in play heading into the June 18 weekly expiry.

The broader market backdrop adds context. SPY carries 40 active expiry dates — a sign of heightened hedging activity. Diplomatic progress on a US-Iran deal pushed oil to three-month lows. That is cooling energy puts across the board.

GOOGL has the most densely populated options chain of the group — 22 expiries through September. SpaceX IPO chatter and the Iran macro backdrop are fuelling both call and put flow simultaneously.

Short interest in Oracle is just 2.1% of free float. Bears are not piling in yet. The options market may be pricing in a snap-back before they get the chance.

Data sourced from ORTEX. This is not financial advice.