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Technology Stocks : Oracle Corporation (ORCL)
ORCL 194.92-1.1%Dec 31 3:59 PM EST
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To: Eric who wrote (574)12/6/1996 8:34:00 PM
From: up3up4   of 19080
 
What do you think of the idea of buying a spread?

Oracle Dec 45 puts @ 1 9/16, and Dec 45 calls @ 2 7/16. This way even if they don't make the earning, the puts will worth enough to the calls. You will win if ORCL is > 49 or < 41. The worst case will be if the earning is met and no up/down action at all, you will lost $4.

It you are really bullish, buy Dec 40 puts at 1/2 instead. Also assume the stocks will climb back to 50 before earning, you are actully ahead $2.

note: if ORCL doesn't make the earning, it will drop a lot more than $4.
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