Oracle FOMO Supercharges Call Options Frenzy After Bloom Energy Deal
$Oracle(ORCL)$
The catalyst hit Monday night, with Oracle expanding its partnership with $Bloom Energy Corp(BE)$
That speed matters for a company that's racing to power a network of humongous server farms tied to a $300 billion OpenAI infrastructure contract for 4.5 GW of compute over five years. The almost 25% surge in Oracle's stock price since Thursday's close signaled the market's growing confidence over that its AI cloud buildout and the capital expenditures behind it, is real and accelerating.
Call options outnumbered put options 404,530 to 106,610 in volume, taking the put-call ratio to 0.26, the lowest in six months, data compiled by Bloomberg showed. The heaviest walls stacked at the $200 strike price, which could signal buyers' optimism that the stock could extend its gains before the end of the week.
Still, the probability model gives just a 1.3% chance Oracle closes above $187.56 by Friday. Even for contracts expiring as far out as Jan. 21,2028, the odds are at less than 34%. Traders are paying up anyway and that signals the so-called fear of missing out (FOMO) is still active.
At the same time, deep out-of-the-money put options expiring in two days exploded to 310.96% at the $85 strike price, which could be viewed as a sign of fear of a crash. Taken together, these show hedging and FOMO happening in the market at the same time.
Call options that give their holder the right to buy Oracle shares at $175 by Friday attracted the heaviest trading, with 47,390 contracts changing hands, more than double the open interest of 21,070 contracts, exchange data tracked by moomoo showed. The price on that contract more than doubled as the rally in shares took the stock price closer to that strike price, increasing the likelihood that the call option will be in the money before it expires in two days.
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