CNBC
AI trade faces test with next week's Oracle earnings
* Oracle earnings and AI infrastructure news could drive volatility.
* Options strategy uses September/January strangle swap for 70%+ profit probability.
* Wall Street expects 28% revenue growth; options price in 10%+ move.
Oracle reports earnings next week, a day after OpenAI's Goldman Sachs presentation, with 28% expected revenue growth. Wall Street is bullish (42 Buy ratings). Options imply a 10%+ move. The recommended September/January strangle swap sells the $125/167.5 weekly strangle and buys the $115/195 January strangle for ~$8.30 net debit. The position offers ~70% probability of profit and breakevens at $118 downside/$180 upside, capitalizing on potential volatility crush or shock moves.
September 2, 2026 at 1:57 PMORCL