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URL:  https://boards.fool.com/hi-mick-i-got-some-thoughts-from-billy-on-this-34084589.aspx

Subject:  Re: Oracle Diagonal Date:  12/14/2018  12:44 PM
Author:  TMFEpsilon Number:  8579 of 8621

Hi Mick,

I got some thoughts from Billy on this one. He notes that the fair value estimate for Oracle is pretty close to the current price, and that it is listed in Tier 2, indicating good expectations for North Star returns over the next three years.

He says that once the short call expires next week, it would be reasonable to re-up it with a new near-the-money call, looking to go 3-4 months out. You could keep doing that so long as the price of Oracle stays relatively stable or slowly appreciates, until the expiration of the 2020 owned call.

I'm doing this diagonal myself, and that was my basic plan. I might hold off immediately after expiration to see if the price gets closer to $50 in the next few weeks, which I think it could given recent market volatility, but one never knows. Even though it is down right now, a few more written calls at the current price level through Jan 2020 could bring us a nicely profitable position overall.


Would be nice to get another buck or two on the stock, though, before reupping the next one at a $50 strike.

Toby
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