Oracle (ORCL) Options Signal Bullish Bias Amid $185 Support Battle: Here’s How to Play the Cloud Giant’s Rebound

• Oracle’s stock has plunged 2.2% to $185.73, trading near its intraday low and below all major moving averages.
• Options market shows a 0.86 put/call open interest ratio, with heavy call buying at $200–$280 strikes and bearish puts at $177.5–$185.
• Cloud revenue growth and $523B RPO backlog hint at long-term potential, but debt and free cash flow concerns linger.

The big picture: Oracle’s options market is locked in a tug-of-war between short-term bears and long-term bulls. With the stock testing its Bollinger Band support at $188 and a key $185 psychological level, traders need to decide whether this dip is a buying opportunity or a warning sign.The Options Imbalance: Who’s in Control?

Oracle’s options chain tells a story of divided sentiment. Call open interest dominates at strikes like $200 (OI: 13,772) and $220 (OI: 12,786), suggesting some bullish bets for a rebound. But the top puts—$177.5 (OI: 12,514) and $180 (OI: 10,601)—show bears are bracing for a breakdown below $185. The 0.86 put/call ratio (calls > puts) leans slightly bullish, but the heavy put activity at $177.5–$185 means a sharp drop could accelerate.

Here’s the catch: The $200 call wall could act as a magnet if the stock rallies, but the RSI at 43.88 isn’t screaming oversold. Meanwhile, the lack of block trades means no whale-sized bets to tip the scales. For now, the stock is stuck in a 181.41–188.97 range, and options traders are hedging both sides.

News vs. Options: Clouds of Optimism or Storm Clouds?

Oracle’s fiscal Q2 results are a mixed bag. A $523B RPO surge and 34% cloud revenue growth are tailwinds, but $50B in CAPEX and $108B in debt are headwinds. The options market mirrors this duality: bullish calls for the cloud story, bearish puts for the debt worries.

Investors are split. Some see the 42% drop from September as a chance to buy into Oracle’s AI infrastructure bets (like the $300B OpenAI contract). Others fear the free cash flow outflows will keep dragging the stock lower. The key question: Will the market value Oracle’s long-term cloud dominance over its short-term financial strain? Right now, options traders are hedging that bet.

Trade Ideas: Calls for Bulls, Puts for Cautious Bears

For bulls: Buy ORCL20251219C200 (Dec 19 $200 call) if the stock breaks above $188. The $200 strike has 13,772 open contracts, acting like a gravity well. A rebound to $190–$200 could trigger a short-covering rally. Alternatively, a bullish call spread at $185–$200 could cap risk while riding the cloud hype.

For bears: Buy ORCL20251219P1775 (Dec 19 $177.5 put) if the stock closes below $185. The $177.5 strike has 12,514 open puts, and a breakdown could accelerate to $175–$170. A put spread at $177.5–$185 would limit downside risk while targeting the next support zone.

Stock traders: Consider entries near $181.41 (intraday low) with a tight stop below $180. If the stock holds, target $190 as a short-term rebound level. For a longer play, buy on a close above $200 with a target at $220, aligning with the call-heavy $220 strike wall.

Volatility on the Horizon: Clouds Gather, But So Do Opportunities

Oracle’s near-term future hinges on two things: its ability to manage debt while scaling cloud infrastructure and whether the market rewards its AI partnerships. The options data suggests a volatile December, with key inflection points at $185 (support), $190 (rebound), and $200 (bullish catalyst). Traders who watch these levels—and the options activity around them—could spot high-probability setups as the stock battles its way out of this trading range.