A Blog that tracks Lenny Dykstra's deep in the money option picks from his column featured on thestreet.com's website. His "Low risk - High reward" system is looked at to determine how successful it is. The strategy involves picking good companies where the stock price is too cheap and buying deep in the money calls for several months out. The call prices will tend to go up dollar for dollar with the stock price since they are already "in the money". Dykstra buys 10 calls and looks for the stock to go up $1 dollar for a $1000 gain. He stresses that this is a short term strategy and to take profits when they come. The "maximum gain potential" is listed just to give an idea of how high the option price could have gone, but profits for this system should be taken as soon as they are made. I don't want to imply that one should wait for bigger gains.
I haven't seen any columns on thestreet.com for Dykstra's option picks for the last 2 Mondays. Maybe a vacation or has he been dropped?? Anyone that knows anything I would be curious to hear.
posted by CramerTracker @ 8/28/2006 08:32:00 p.m.
4 comments
4 Comments:
here's an article on lenny:
http://www.nj.com/printer/printer.ssf?/base/sports-1/1160455584216100.xml&coll=1
The other is the stock market. For a while, he wrote "Nails on Numbers," a column on TheStreet.com.
Not sure where Lenny can be seen regularly, but he appeared 10/21 on Bulls and Bears on Foxnews and gave his picks:
ADM--thinks it will go to the mid-40s in the near future
YHOO--little risk, lot of upside
APC--11/6 earnings--should be a big number
UNT--a $65 stock
DEO--should go to $100
He's been back on thestreet.com for quite some time now:
http://find.thestreet.com/cgi-bin/texis/author/?au=A1100645
Anyone know who makes deep in the money picks similar to Lenny?? It seems he hasn't been doing it for sometime.
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