Oracle (ORCL) Options Signal Bullish Cloud Play: Key Strikes at $210 Call, $175 Put as Legal Risks and Analysts Clash

• Oracle’s stock plummets 4.7% to $192.71 amid lawsuit risks but shows strong call open interest at $210.
• Options data reveals a 0.87 put/call OI ratio, with heavy bearish positioning at $175 puts and bullish bets at $300 calls.
• Analyst Jackson Ader argues Oracle is undervalued at $125/share—hinting at $300 upside if cloud margins improve.

Here’s the takeaway: Oracle’s options market is split between cautious bearishness and aggressive bullish bets, while technicals hint at a potential rebound. The stock’s sharp drop has created a volatile crossroads—where legal risks clash with cloud growth optimism. Let’s break it down.

Bullish Calls at $210, Bearish Puts at $175: A Battle for Oracle’s Future

The options chain tells a story of two camps. This Friday’s top OTM call has 25,268 open contracts at $210 (ORCL20260116C210)—a strike that’s 9% above the current price. That’s not just noise; it’s a bet that Oracle’s cloud push could outperform skeptics. Meanwhile, the largest put OI sits at $175 (ORCL20260116P175) with 17,442 contracts, suggesting traders are hedging against the lawsuit’s fallout.

But here’s the twist: The block trade data adds intrigue. A massive 1,250-contract call block at ORCL20260320C210 (March 20 expiry) hints institutional players are locking in long-term bullish exposure. Conversely, a 250-contract put block at ORCL20260320P200 (sell put) signals some are shorting volatility. This isn’t just retail frenzy—it’s a chess game between cloud optimists and legal pessimists.

Legal Headlines vs. Analyst Bullishness: Which Way Will Oracle Swing?

The lawsuit over AI debt could weigh on sentiment, but KeyBanc’s Jackson Ader sees a $300 price target. His logic? Oracle’s core software business is undervalued at $125/share, and its cloud unit trades at a discount to peers. That creates a two-sided narrative: short-term pain from legal risks, long-term gain if cloud margins normalize.

Investor perception is key here. If the market discounts the lawsuit as a one-off cost (rather than a existential threat), the $210 call bets could pay off. But if the case drags into earnings or credit ratings, the $175 puts might look prescient. The coming weeks will test whether Oracle’s cloud story can outshine its debt drama.

Trade Ideas: Calls for Cloud Optimists, Puts for Legal Hedges

For options traders, the ORCL20260116C210 call is a high-conviction play. If Oracle closes above its 30-day MA ($198.88) and breaks the Bollinger middle band ($193.54), this strike could see action. For a safer bet, the ORCL20260123C210 (next Friday expiry) offers extra time if the rebound is delayed.

On the bearish side, the ORCL20260116P175 put is a natural hedge. With the lower Bollinger band at $180.25, this strike gives room for a bounce while capping losses if the lawsuit escalates.

Stock traders could consider entries near $193.54 (middle Bollinger band) with a target at $210. A stop below $180.25 would protect against a breakdown. For the bold, a short-term scalp might target a rebound off the $198.06 30-day support level.

Volatility on the Horizon: Cloud Gains vs. Legal Fog

Oracle’s next move hinges on two forces: execution on its cloud margins and how the market digests the lawsuit. The options data suggests traders are pricing in a 9–15% move either way by this Friday. If the stock holds above $193.54, the bulls gain momentum. Below $180.25, the bears take control.

This isn’t a clean setup—it’s a tug-of-war between Oracle’s long-term cloud potential and near-term legal noise. But for traders who can stomach the volatility, the options market has already carved out clear battlegrounds. The question isn’t if Oracle will move—it’s which way.