Oracle’s stock rises after OpenAI announces $30 billion annual cloud partnership on social media
by VT Markets
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Jul 22, 2025
OpenAI is the client involved in Oracle’s $30 billion-per-year cloud deal. This was first mentioned in an SEC filing last month, but the customer wasn’t named.
OpenAI CEO Sam Altman confirmed the partnership on social media and in a blog post. However, he did not reveal any financial details about the agreement.
The announcement helped Oracle, causing its stock prices to soar to record highs.
The market’s reaction shows a strong positive response to the partnership, with Oracle’s stock rising by double-digit percentages to new peaks in mid-June. This surge has increased the implied volatility for the company’s options. For traders, this means option prices are currently very high.
If you think this upward trend will continue, it’s wise to avoid buying call options directly due to their steep prices. Instead, consider using a bull call spread. This approach limits potential gains but lowers your initial cost. It allows you to take advantage of upward momentum while reducing the impact of high premiums.
Altman’s failure to confirm a specific dollar amount introduces a note of skepticism. This situation creates a chance for traders who think the stock has risen too quickly. They might look at a bear call spread, a defined-risk strategy that can earn a profit if the stock price stays steady or goes down in the coming weeks.
We’ve seen similar patterns in the past, like after the Cerner acquisition in 2022, where an initial spike in price was followed by a consolidation phase. This history suggests that the current high implied volatility will likely decrease over time. Traders can take advantage of this expected “volatility crush” by selling option premium, a strategy that benefits as market uncertainty fades.
by VT Markets
Jul 22, 2025
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