To The Moon

Oracle $Oracle(ORCL)$ Earnings Recap:

• Q1 revenue and EPS slightly beat expectations.

• Record $455 billion backlog is the core highlight this quarter.

• The OpenAI contract is expected to contribute about $30 billion per year through 2028, likely a five-year deal.

• Oracle forecasts its cloud infrastructure business scaling to $32B, $73B, $114B, and $144B over the next four years.

UnitedHealth $UnitedHealth(UNH)$ Recent Developments:

• On September 9, announced Medicare Advantage star ratings above expectations—about 78% of members will be rated four stars or higher, qualifying for additional subsidies.

• $UNH$ provided 2025 EPS guidance: “not less than $16.00.”

• Projected to return to low double-digit growth after 2027.

• On August 15, Berkshire Hathaway disclosed they bought 5.04 million $UNH$ shares in Q2.

Takeaways:

• Oracle’s multi-hundred-billion-dollar backlog fundamentally shifts its business model and long-term growth outlook.

• The company now has a clear and highly visible growth path, with a fundamental transformation in its business structure.

• By comparison, $UNH$ has been pressured by rising costs, with margins now in a recovery phase and the stock rebounding off the lows.

• Oracle shares jumped 30% post-earnings to all-time highs, and the market is still digesting this positive catalyst.

• $UNH$ dropped 4.7% after earnings, then rebounded 39% from new lows, driven by Berkshire’s investment and improved Medicare star ratings.

Trading Strategy:

• Both $UNH$ (after digesting its positive catalyst) and $ORCL$ (with upside still being absorbed) are suitable for conservative bullish strategies.

• If you want to chase the rally in $ORCL$ or $UNH$ but are worried about buying at the top, consider selling out-of-the-money puts.

• If you’re holding $UNH$ shares, you can sell out-of-the-money covered calls to generate income during this phase.

Example strikes and expirations:

• Covered call: $UNH 20250912 360.0 CALL$ 

• Cash-secured put: $UNH 20250919 325.0 PUT$ 

• Cash-secured put: $ORCL 20250912 290.0 PUT$