Oracle Corporation (ORCL) provides products and services that address all aspects of corporate information technology (IT) environments, including application, platform and infrastructure. The Company's businesses include cloud and on-premise software, hardware and services. Its cloud and on-premise software business consists of three segments, including cloud software and on-premise software, which includes Software as a Service (SaaS) and Platform as a Service (PaaS) offerings, cloud infrastructure as a service (IaaS) and software license updates and product support.It is reporting earnings on Wednesday, March 15, after market close: (Source: TD Waterhouse)As evident from the above, the company beat earnings estimates in 50% of time in the last six quarters, showing in-line results in 13% of time, and underperforming in the rest of time. It has seen modest volatility and a strong uptrend in the market price of its stock over the last three months: $ORCL, Oracle Corporation / D The market participants expect the following numbers over the next few quarters, including the upcoming one:(Source: TD Waterhouse)Market data show that the one-week options are overvalued:(Source: TD Waterhouse)The one-week straddles (at-the-money options with a strike price of $42.50 and expiring on March 17, 2017) are worth around 2.9% of the current market price of the stock (including the calculation of the options' moneyness). Historically, the stock has been less volatile than that on a weekly basis over the last year:(Source: Google Finance. Calculations by author)As you can see, the stock has had a weekly standard deviation of around 2.2% over the last 52 weeks, while the straddle expiring in three days has an implied weekly volatility of around 2.2% (calculated based on 3 calendar days remaining until expiration), also including volatility from the earnings event this week. I therefore see signs of overvaluation in these options.Hence, selling the straddles is a good idea from a theoretical standpoint.