Three Ways To Buy ORCL Shares

This is the fourth in my series to help investors navigate and leverage the power of the Fidelity Trader+ application. The more I use this app, the more I like it. In the early days of my investing journey, there was only one way to get stocks ordered. I called the broker and he took my order and entered it. I had no idea how much I would pay for the shares. At best it was a “market order.” That is an expensive way to buy an investment.

With Trader+ you can still enter a market order. I rarely do that and I don’t recommend it unless you just have to have the shares now. The second way, which is preferable by far it to enter a buy limit order. With that type of order you tell the market what you are willing to pay for the shares (within reason) and hope that the order is filled at some point that day or that week. I do this most of the time.

There is, however, an even better way. For example, if I have decided that I want shares of Oracle (ORCL) and that I am willing to pay $119/share, I could enter a buy limit order. I may or may not get the shares, but I won’t receive any compensation for this type of purchase. The better way, in my experience, is to enter an options contract to purchase the shares.

Here is a video that steps you through my thought process using Trader+. YouTube Trader+

Cash Covered PUT for Oracle Shares

Thursday I entered an option contract order, offering to purchase 100 shares of Oracle if the share price drops to $119/share or less by the market close today (Friday). After commissions and fees, I received cash: $132.34. I don’t own the shares (yet) but I made some money for being willing to buy them.

The question one has to ask is “do I really need the shares today at a $120/share price tag, or can I wait a day, get paid $132 and have the potential to buy the shares at $119/share late Friday afternoon?” The strike price is $119. The risk, of course, is that the price of Oracle shares could drop  well below $119 and I will still have to pay $119 for the shares. But I would have had the same risk if I had purchased the shares this afternoon for $119.44 (the lowest price for the shares on Thursday.)

The other thing to remember is that my true cost basis, if I get the shares at $119, is actually less than $119. My cost is $119 minus the $1.32/share I already received.

YTD 2026 Options Income

The trade I entered took less than five minutes. The video is longer than that because I took the time to explain the choices and to show the order I entered for the cash covered ORCL put contract. This year my total options income is $111,672. That is a bit more than my YTD dividends income which is $109,971. In other words, total YTD income is already $221.6K. You can buy a lot of groceries and give a lot of gifts with that income. Even if I don’t get the ORCL shares, I profited from doing the options trade.

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