Dykstra: It's Time to Hit the Sirf Options

When I get the chance to use deep-in-the-money (DITM) calls to invest in companies at the cutting edge of technology that also have extraordinary growth, I take advantage of the opportunity as quickly as possible.

Generally, it takes an exaggerated correction in a stock for its DITM calls to show up on my radar screen. As you all know, I only buy stocks where I can implement my DITM calls strategy. (For those of you that believe I was hit by too many pitches back when I played baseball, and want to question my approach, go to the "videotape" -- I display my results every Wednesday in my Stat Book column.)

With the market continuing to soar, it's increasingly difficult to find cheap growth, but Sirf Technology(SIRF Quote - Cramer on SIRF - Stock Picks) presents just such an opportunity.

Sirf is a supplier of semiconductors and software products for global positioning systems (GPS) in phones and automobile navigation systems. While many may have encountered automobile navigation devices, the use of GPS in cell phones is only now becoming a standard feature. In the past few years, cell phones have come with gimmicky additions, such as cameras and MP3 players, yet I believe none of these will have the overall impact of the inclusion of GPS on cell phones.

Users will be able to find locations and directions all with one device in a way never before possible. What was once only available to soldiers and back-country hikers can now play a very practical and important role in the everyday lives of individuals.

Already GPS is becoming increasingly popular with cell phone users, and I believe this is only the tip of the iceberg.

Sirf traded as high as $32 in February before getting caught up in the general market selloff, and then it reported disappointing earnings on April 19 before it had the chance to recover. The earnings disappointment stemmed largely from a customer's delayed implementation of Sirf's products in its GPS systems.