Oracle Corporation (ORCL) Message Board

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Technology Stocks : Oracle Corporation (ORCL)

ORCL 234.69

-2.5%

1:00 PM EST

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To: Jerome who wrote (16692)	4/11/2002 9:20:54 AM
From: robert b furman	Read Replies (1) of 19079

Hi Jerome, + DI has gone underground -DI has gone almost meteoric. In the case of Orcl I'm selling naked puts.In this case june 15.I'm expecting an upbeat earnings announcement before expiration.If the stock is below 15 I'll be put to.Yesterday I sold 10 contracts @ 3.40 net price of 11.60 and 10 contracts at 4.00 -net price of 11.00. If I must buy the stock - I'm ok at that long term entry point - if not I keep 7,600.00 dollars.I'd say half the time I end up getting the stock the other half I keep the money.I like to accumulate stock this way when the price of a stock gets low - the premium helps save a higher percent of the entry price.As time goes on the value of the call decays and if I don't want to buy the stock covering the put I sold is relativelt more reasonable -(due to the decay in time premium. I've never made money on options going against the decaying time premium.I never do this unless I'd be happier buying the underlying stock.It is the only option play I do and it works the very best when a low priced stock breaks down on sector news.Buy it out far and hope for sector news to improve plus let the time decay go to work for you. I hope that helps. The ADX approach is for a breakout coming off a bottom. The option approach is a lowball bottom buying approach. Bob

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