July 10th 2006 - MDT

Dykstra picked the November 42.50 Call for MDT Medtronic Inc.
Read the column here.

Option price: $6.30
Stock closing price on Friday July 7th: $47.59
Approximate premium: $1.21 ($47.59 - (Strike $42.50 + $6.30) = $1.21)

So a higher premium then normal here, since it is above $1. The option had good volume today of 108 trades most likely from followers of Dykstra's picks. The option settled in today at $6.50 at the close but did trade today as low as $6.10 according to Yahoo! Financial so there was some opportunity to get in at or below the recommended price.

Of note, Cramer last gave MDT a thumbs down in the lightening round on May 11th when the stock was trading slightly higher then it is now.

July 17th Update - The stock price is basically unchanged from the price on the day of the recommendation, but the option value has dropped some and is trading currently at $6.00 but with an ask of $6.40 and bid of $6.20. So far no harm done.

July 25th Update - MDT easily passed Dykstra's $1 price increase target of $7.30 today as the MDT November 42.50 option closed at $8.00. The stock traded up nearly 2 dollars today alone. Another good pick from Dykstra for sure.