A little different style on the play this month.  Since the FEB 08 strikes are either in the money or the credit for the risk is unacceptable in my opinion, I'm going with a long calendar play.  If you're not familiar with the calendar option strategy, in a nutshell, you're selling the front month and buying a month further out.  You're also long vega (volatility), so if vega rises, your spread gains in value, if it falls, your spread loses value.  For a very detailed description, please refer to my article Construction / Deconstructing the Calendar Spread.

The one nice thing is that calendars are cheap.  I hope to get filled around 0.35 per spread.  And since this is a debit spread, this is my maximum at risk.  My maximum profit will be attained if ORCL is trading at the strike price around expiration.  According to my software, right around $30-$35 per spread is the maximum profit around Feb 1st.

Think of the P/L profile of the vertical spread.  It is pretty much a backwards "Z".  The risk profile of the calendar is a lot more like a sine wave.  If ORCL shoots past the strikes (I'm trading the $25 strikes, by the way) and keep on launching, I'll begin to lose money as the short, front month call gains value faster than the long call.  Calendars are also used to capitalize on time decay, but I'm short selling myself (no pun intended) two ways.  For one, I'm probably not holding until expiration.  Calendars really start to become sensitive to price movement towards expiration.  Second, my calls are a good bit out of the money so the short call decay isn't entirely offsetting the long call decay.  It's pretty close though.  On Feb 1st if the price of ORCL hasn't moved, my model says I'm out about $3 per spread.  Not too bad for a month hold time.

So to recap, my idea is to buy the FEB/MAR $25 call calendar spread.  I recommend that you DO NOT follow my trade.