Oracle has been a poster child for “AI profit taking” after nearly being cut in half since trading up to $345 on September 10. The euphoria in Oracle came after investors celebrated the news of their massive backlog of AI-related business. Evaluating the oversold conditions in ORCL, coupled with the encouraging TikTok news Friday for Oracle, I believe it is time to own this essential AI product and service behemoth. I want to use options to leverage the opportunity of a potential low having been made by Oracle. TikTok has finally signed agreements with three major investors (Oracle, Silver Lake and MGX) to form a new TikTok U.S. joint venture, ensuring that Americans will keep the ability to waste time scrolling ‘cat and dog’ memes on TikTok. Larry Ellison, Oracle’s co-founder, remains Executive Chairman of the Board and Chief Technology Officer (CTO), continuing to play an influential role in the company’s strategy, especially around AI and cloud. Ellison is also a close confidant of President Trump. Oracle is aggressively building AI-ready data centers and multi-gigawatt infrastructure, seemingly much faster than competitors. Oracle’s Remaining Performance Obligations (RPO) hit a record $523 billion in its second quarter fiscal 2026 earnings released last week, up almost 500% year-over-year, revealing massive locked-in future revenue from AI and cloud contracts…if it can deliver in a timely manner. ORCL 6M mountain Oracle common over the past six months. A strategic partnership with Nvidia in 2025 has vaulted Oracle up the AI innovation ladder, with Gen2 cloud infrastructure gaining traction for scalable, high-margin deployments. That all being said, is the bottom in? Not sure but, with an RSI level of 30, the stock is in oversold conditions, and I believe now is the time to define your risk and be bullish on this non-Mag 7 name. The Trade (Selling a Risk Reversal) Sold the 2/20/26 $180 ORCL Put for $9.25 Bought the 2/20/26 $200 Call for $10 This spread will cost an investor $0.75 or $75 ORCL was trading around $189 when the trade was executed. An investor must be comfortable (and have the cash) available in case the put option sold is exercised at $180. DISCLOSURES: Kilburg is long ORCL and sold the Risk Reversal above. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
