Oracle Earnings Could Spark an 11% Stock Swing, Says Research Head: Here's Why Options Traders Are Bettin

Oracle Corp. (NYSE:ORCL) is heading into its fiscal first-quarter earnings report with options markets pricing a potentially sharp move, while traders appear increasingly willing to pay for upside exposure.

Oracle Options Price In 11% Earnings Move

Oracle is scheduled to report results Thursday after the market close. Options are currently pricing an approximately 11% move, or about $18, around earnings, according to Julia Spina, head of research at IG Group North America.

While speaking on CNBC’s "Power Lunch," Spina said the implied move is large but not unusual for Oracle given its recent earnings history.

"The options are pricing about an 11% move," Spina said, noting that Oracle’s reactions over the past three earnings cycles ranged from roughly 8.5% to 10.8%.