Bullish Options Flows Back U.S. Stocks and Oracle for 12% Swing Test
Updated
Updated · CNBC · Jun 10
Bullish Options Flows Back U.S. Stocks and Oracle for 12% Swing Test
3 articles · Updated · CNBC · Jun 10
Summary
Wednesday’s test for U.S. stocks centers on CPI data and Oracle earnings after options activity turned notably bullish following the market’s worst day in a year and a volatile Tuesday rebound.
Interest-rate-sensitive trades led that optimism: homebuilder ETFs ITB and XHB saw overwhelmingly call-heavy flows, while regional bank fund KRE drew more than three times as many calls as puts.
Oil slipping below $86 a barrel — its lowest since mid-April — reinforced hopes inflation could surprise lower, even after Trump renewed threats against Iran early Wednesday and crude only edged higher.
Oracle is the other focal point, with options implying a 12% post-earnings move — the biggest since March 2020 — while traders bought more than 27,000 calls Tuesday and about $220 million of $300 million premium was tied to calls.
The setup suggests investors are betting lower-rate beneficiaries can keep leading without a sharp big-tech setback, though Oracle’s results may determine whether that rotation holds.