Wednesday, March 19, 2008

Why I sold another call option on Oracle

I sold a call option on Oracle with a strike price of $21 that expires in April. I think $21 is near the bottom of Oracle's fair value range and I'm willing to be paid 75¢ for the risk it will be worth more than $21 in a month. Oracle took a little dive today after I sold the call and the odds that it will be exercised are about 2 in 5 as of right now. I'll also be happy to get the cash if I need to sell—Oracle is most nearly fully valued of my positions.

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