Trump recently revealed a deal about TikTok, which should be finalized in 30 to 45 days. This agreement applies to the US version of TikTok, but Beijing will still own 20% of it. Oracle will provide cloud services for the US operations and is a key player in this deal. The official announcement might happen at the same time as the upcoming meeting between Trump and Xi Jinping. With the Trump-Xi meeting set for this Friday, the market is preparing for fluctuations. If there are any signs that the TikTok deal could fall through, the CBOE Volatility Index (VIX), currently around 17, could jump above 25, a level we haven’t seen since last spring’s trade disputes. It may be wise to look into short-term put options on the QQQ ETF to protect against any negative news from the meeting. Oracle offers the most straightforward way to engage with this news, and its options market is already indicating a significant movement. We saw a similar situation back in 2020 when Oracle’s implied volatility rose by over 40% in the weeks around the announcement. A long straddle using October 2025 options could yield profits from a big price change in either direction once the deal’s details are made public. We should also keep an eye on competitors like Meta and Snap, who would gain significantly if the deal falls apart. When the threat of a US ban on TikTok emerged in August 2020, Snap Inc.’s stock soared almost 9% in a single day as investors anticipated users switching platforms. Buying inexpensive, out-of-the-money call options for these companies with a November expiration could offer a high-reward opportunity if the deal fails. This deal is a crucial move for Oracle’s cloud business, which has been trying to catch up to its bigger competitors. Current statistics show that Oracle Cloud Infrastructure has just under 8% of the market, while Amazon Web Services dominates with over 30%. Securing the large US TikTok account would greatly enhance Oracle’s reputation and revenue, making it sensible to consider bullish ORCL call options if the deal goes through.

here to set up a live account on VT Markets now