Action to take: Sell half of your Oracle, October 22.50 calls (ORQJX)

Just an update on our Oracle October 22.50 calls... They are currently trading at $0.20 by $0.25 - that’s a 100% gain from out entry price on August 31 at $0.10.

Oracle just announced that they will have their earnings conference call for Q1 2008 on Thursday, Sep 20, 2007, 5:00 pm Eastern.

I expect to be out the second half of these by Wednesday at the latest.

A major competitor, IBM announced today that today that based on a new IDC report (a global marketing intelligence firm), the company achieved double digit year-over-year revenue growth in the storage software in Q2 2007, growing fastest and gaining the most revenue share of the top three vendors. This marks the tenth consecutive quarter that IBM Storage Software had equal-or-above-average revenue growth.

This backs my thesis that the corporate software market is undergoing a stealth boom. That said, prudence is the core of any long-term options strategy. We only have a week and a day for this trade to play out, and in this market any thing can happen over that time.

I recommend taking half of your profits off the table and letting the other half run, in essence playing with the house money. In this way we can still capitalize on any large run-up without taking any additional risk to our capital.

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