Oracle is giving up some of last week's gains, and one trader sees more downside ahead.
ORCL is off 0.42 percent to trade at $29.58 after trading as low as $29.15 earlier today. On Friday the database maker rallied off its 2012 lows, posting its highest close since May 2.
A trader bought 9,000 December 29 puts for $1.63 and sold 9,000 December 23 puts for $0.54, according to optionMONSTER's Depth Charge system. The open interest at each strike was under 1,500 at the start of the session, so this is a new put vertical spread .
The spread cost the trader $1.09 to open, which is the amount that will be lost if ORCL remains above $29 at expiration. The trader can close out the spread at any time before expiration by selling it, of course, though the maximum gain of $4.91 would be realized only if the stock is below that $23 strike at expiration. (See our Education section)
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